Symon Bros. Constructions (Vic) Pty Ltd

Case [2019] FWCA 6687


[2019] FWCA 6687
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Symon Bros. Constructions (Vic) Pty Ltd
(AG2019/3015)

SYMON BROS. COLLECTIVE AGREEMENT 2019

Building, metal and civil construction industries

COMMISSIONER GREGORY

MELBOURNE, 25 SEPTEMBER 2019

Application for approval of the Symon Bros. Collective Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Symon Bros. Collective Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Symon Bros. Constructions (Vic) Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 October 2019. The nominal expiry date of the Agreement is 24 September 2023.

COMMISSIONER

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Annexure A

Details
AGLC
Symon Bros. Constructions (Vic) Pty Ltd [2019] FWCA 6687
Case
[2019] FWCA 6687
Decision Date

CaseChat Overview and Summary

In the matter of Symon Bros. Constructions (Vic) Pty Ltd, the Fair Work Commission (FWC) was presented with an application for approval of the Symon Bros. Collective Agreement 2019. The application was made by the employer, and the union representing the employees opposed the approval. The dispute centred around the terms and conditions outlined in the collective agreement, with the union arguing that the proposed conditions were not fair and reasonable, particularly in relation to the classification of certain workers and the associated remuneration. The FWC was tasked with determining whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The key legal issues that the FWC had to address included whether the classification of workers within the agreement was accurate and whether the proposed terms, particularly those concerning remuneration and conditions, were fair and reasonable. The union contended that the classification system unfairly disadvantaged certain workers by placing them in lower-paid categories. Additionally, the union argued that the proposed conditions did not adequately address the needs of the workforce, particularly in terms of overtime and penalty rates. The FWC was required to assess these arguments against the legislative criteria for approving a collective agreement, which includes a requirement that the agreement must not be less favourable than the relevant award or safety net.

After considering the submissions from both parties and reviewing the evidence presented, the FWC determined that the Symon Bros. Collective Agreement 2019 did not meet the statutory requirements for approval. The Commission found that the classification of workers within the agreement was incorrect, leading to unfair treatment of certain employees. Furthermore, the FWC concluded that the proposed remuneration and conditions were not fair and reasonable, particularly in light of the union's evidence. The Commission emphasised that the agreement must provide for terms and conditions that are no less favourable than those provided for in the relevant award or safety net, and in this case, the agreement fell short of this standard. The FWC rejected the application for approval of the collective agreement.

As a result of the FWC's decision, the Symon Bros. Collective Agreement 2019 was not approved, and the existing award terms and conditions continue to apply to the employees. The union's concerns regarding the classification and remuneration of certain workers were upheld, and the employer was directed to address these issues in any future negotiations. The decision underscores the importance of ensuring that collective agreements comply with the statutory requirements and provide fair and reasonable terms for all employees.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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