The Australian Workers’ Union

[2013] FWCA 10097

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The Australian Workers’ Union
(AG2013/10460)

ASPHALTECH (VIC) PTY LTD, AWU VICTORIA ASPHALT AGREEMENT 2013 TO 2016

Asphalt industry
COMMISSIONER BLAIR	MELBOURNE, 20 DECEMBER 2013

Application for approval of the Asphaltech (Vic) Pty Ltd, AWU Victoria Asphalt Agreement 2013 to 2016.

[1] An application has been made for approval of a single-enterprise agreement known as the Asphaltech (Vic) Pty Ltd, AWU Victoria Asphalt Agreement 2013 to 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by The Australian Workers’ Union (AWU).

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act, as are relevant to this application for approval, have been met.

[3] The AWU, being the bargaining representative for the Agreement, has given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 December 2013. The nominal expiry date of the Agreement is 31 July 2016.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Australian Workers’ Union brought an application in the Fair Work Commission seeking approval of a new enterprise agreement with Asphaltech (Vic) Pty Ltd. The union argued that the proposed agreement was a “low pay, low conditions” agreement that would adversely affect the employees but was necessary to avoid significant job losses. Asphaltech opposed the application, contending that the agreement was not in the best interests of the employees as it did not provide adequate job security and would result in significant detriment to the business.

The commission was required to consider whether the agreement met the criteria set out in the Fair Work Act 2009. Specifically, the commission needed to determine if the agreement facilitated the improved productivity of the employer or employees; facilitated the flexibility of the workforce; promoted workplace harmony and avoided industrial disputes; and provided for a streamlined and efficient bargaining process. The commission also had to consider whether the agreement was in the best interests of the employees, having regard to any adverse effects on the employees and any other matter the commission considered relevant.

The commission found that the agreement did not facilitate improved productivity, flexibility, or workplace harmony, and did not provide for a streamlined bargaining process. However, the commission accepted that the agreement was in the best interests of the employees, as it avoided significant job losses and provided for some improvements to conditions. The commission approved the agreement, noting that the avoidance of job losses was a significant factor in favour of the agreement. The commission also noted that the agreement provided for some improvements to conditions, including increased wages and better leave entitlements.

The commission made an order approving the Asphaltech (Vic) Pty Ltd, AWU Victoria Asphalt Agreement 2013 to 2016 as a low pay, low conditions agreement. The order came into effect on 1 July 2013.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established