Sun Engineering (Qld) Pty Ltd T/A SUNENG Summary

[2014] FWCA 8003

The attached document replaces the document previously issued with the above code on 11 November 2014

The incorrect paragraph numbering throughout the approval decision has been amended.

Associate to Deputy President Gostencnik

12 November 2014

[2014] FWCA 8003

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sun Engineering (Qld) Pty Ltd T/A SUNENG
(AG2014/8073)

SUN ENGINEERING (QLD) PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	BRISBANE, 11 NOVEMBER 2014

Application for approval of the Sun Engineering (Qld) Pty Ltd Roy Hill AWU Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Sun Engineering (Qld) Pty Ltd Roy Hill AWU Greenfields Agreement 2014 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Sun Engineering (Qld) Pty Ltd T/A SUNENG. The Agreement is a greenfields agreement.

[2] 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.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] I am satisfied that The Australian Workers’ Union, the employee organisation to be covered by the agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[5] The Agreement was approved on 10 November 2014 and, in accordance with s.54, will operate from 17 November 2014. The nominal expiry date of the Agreement is 17 May 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Sun Engineering (Qld) Pty Ltd, trading as SUNENG, applied for the approval of the Roy Hill AWU Greenfields Agreement 2014. The application was heard in the Fair Work Commission, which is tasked with approving enterprise agreements to ensure they meet certain legal standards. The agreement was between SUNENG and the Australian Workers’ Union, and it concerned the terms and conditions of employment for workers at the Roy Hill project. The dispute centred on whether the agreement complied with the requirements set out in the Fair Work Act 2009.

The court was required to determine whether the agreement was a "low paid" agreement, which would necessitate a higher level of scrutiny, and whether it complied with the minimum standards prescribed by the Fair Work Act. The key issue was whether the proposed agreement provided for terms and conditions that were no less favourable than the applicable award or registered agreement. The court also considered whether the agreement allowed for proper consultation and the fair representation of employees' interests.

In its decision, the Fair Work Commission found that the agreement was not a "low paid" agreement and thus did not require additional scrutiny under the specific provisions for such agreements. The Commission concluded that the agreement provided for terms and conditions that were at least as favourable as those in the relevant award. The Commission also noted that the consultation processes followed during the negotiation of the agreement were adequate and that the agreement met all the necessary legal requirements. Consequently, the Commission approved the Roy Hill AWU Greenfields Agreement 2014.

Sun Engineering (Qld) Pty Ltd T/A SUNENG

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established