| [2024] FWCA 78 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement
Substrata Group Pty Ltd
(AG2023/5276)
SUBSTRATA GROUP PTY LTD AND THE AUSTRALIAN WORKERS’ UNION (TUNNELLING) GREENFIELDS AGREEMENT 2023
| Building, metal and civil construction industries | |
| COMMISSIONER PLATT | ADELAIDE, 9 JANUARY 2024 |
Application for approval of the Substrata Group Pty Ltd and The Australian Workers’ Union (Tunnelling) Greenfields Agreement 2023
An application has been made for approval of an enterprise agreement known as the Substrata Group Pty Ltd and The Australian Workers’ Union (Tunnelling) Greenfields Agreement 2023 (the Agreement) pursuant to s.182(4) of the Fair Work Act 2009 (the Act) by Substrata Group Pty Ltd (the Applicant). The Agreement is a single enterprise agreement that is a Greenfields Agreement.
The matter was allocated to my Chambers on 4 January 2024.
There is one National Employment Standard (NES) issue that requires comment:
· Clause 17.10 states if an employee fails to give notice, the employer has the right to withhold monies due to the employee. It appears this may reduce an employee’s NES entitlement payable on termination.
Clause 8 of the Agreement acts as an effective NES precedence clause. As a result of the NES precedence clause, the above clause will not apply to the extent it is inconsistent with the NES.
The Applicant has submitted an undertaking in the required form dated 8 January 2024. The undertaking deals with the following topics:
· Further to clause 24.3, trainees will be paid at the current rate of level TW1 at the commencement of the Agreement, being $51.91 an hour. Further adjustment will occur in accordance with Appendix 1.
No bargaining representatives were appointed. The Australian Workers’ Union did not express any view on the undertaking.
The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.
The Agreement is a Greenfields Agreement that meets the requirements of s.172(2)(b) of the Act.
In accordance with s.187(5)(a) of the Act, I am satisfied that the Australian Workers’ Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to the work that is to be performed under it.
I am satisfied that it is in the public interest to approve the Agreement.
I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met.
Pursuant to s.53(2)(b) of the Act I note that the Agreement was made with the Australian Workers’ Union and that the Agreement covers this organisation.
The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 7 June 2027.
COMMISSIONER
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- AGLC
- Substrata Group Pty Ltd [2024] FWCA 78
- Case
- [2024] FWCA 78
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the Commission was whether the agreement met the requirements for registration under the Fair Work Act. Specifically, the Commission had to determine if the agreement contained all the mandated minimum terms and conditions, was free from prohibited content, and had been negotiated in good faith. Additionally, the Commission needed to assess if the agreement would provide a safety net for employees that was no less favourable than the applicable award or registered agreement.
The Fair Work Commission found that the agreement contained all the necessary minimum terms and conditions and was free from prohibited content. The Commission was satisfied that the agreement had been negotiated in good faith and would provide employees with protections that were at least as good as those provided by the applicable award or registered agreement. Therefore, the Commission approved the agreement, finding that it met the statutory requirements for registration. The approval ensures that the terms of the agreement will apply to the employees of Substrata Group Pty Ltd covered by the agreement, providing a framework for their employment conditions and protections.
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Background
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