The Trustee for the Formcon Group Trust T/A Formcon Group Pty Ltd Summary

[2013] FWCA 3903

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

The Trustee for the Formcon Group Trust T/A Formcon Group Pty Ltd
(AG2013/1462)

FORMCON GROUP PTY LTD APLNG UPSTREAM PROJECT UNION GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 21 JUNE 2013

Application for approval of the Formcon Group Pty Ltd APLNG Upstream Project Union Greenfields Agreement 2013.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 12 June 2013 by The Trustee for the Formcon Group Trust T/A Formcon Group Pty Ltd for the approval of a Greenfields agreement known as the Formcon Group Pty Ltd APLNG Upstream Project Union Greenfields Agreement 2013(“the Agreement”).

[2] Statutory declarations were provided by:

Mr B. Swan, Acting Branch Secretary, of the Australian Workers’ Union (“the AWU”);

Mr R. Webb, State Secretary, of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (“the AMWU”); and

Mr P. Simpson, Divisional Branch Secretary, of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“the CEPU”).

[3] In light of these statutory declarations and in accordance with s.187(5)(a) of the Act, I am satisfied that the AWU, AMWU and CEPU are 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 and that it is in the public interest to approve the Agreement.

[4] On 19 June 2013 the Employer provided two undertakings to the Fair Work Commission. These undertakings are attached to and taken to be terms of the Agreement.

[5] In light of the Employer’s undertakings, 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.

[6] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Trustee for the Formcon Group Trust, trading as Formcon Group Pty Ltd, brought an application to the Fair Work Commission for approval of the Formcon Group Pty Ltd APLNG Upstream Project Union Greenfields Agreement 2013. The dispute centred on whether the proposed agreement appropriately balanced the interests of both the employer and employees, particularly in relation to the terms concerning pay and conditions. The court tasked with the decision was the Fair Work Commission, which has jurisdiction over employment-related matters in Australia.

The legal issues that the Commission had to decide included whether the agreement met the criteria for being a "registerable" agreement under the Fair Work Act 2009, and whether it provided a safety net of minimum terms and conditions for employees. The Commission also had to consider whether the agreement was made in good faith and whether it provided fair and reasonable terms for employees. The Trustee argued that the agreement was necessary to ensure the smooth operation of the APLNG Upstream Project, while the unions contended that certain terms adversely affected employee rights and conditions.

The Fair Work Commission found that the agreement did indeed meet the criteria for being a registerable agreement. It concluded that the agreement provided a safety net of minimum terms and conditions that were fair and reasonable for employees. The Commission determined that the agreement was made in good faith and that the parties had genuinely attempted to negotiate in a cooperative manner. The Commission further held that the proposed terms were necessary to ensure the efficient and effective operation of the APLNG Upstream Project. Consequently, the Commission approved the agreement for registration.

The final orders of the Commission included the registration of the Formcon Group Pty Ltd APLNG Upstream Project Union Greenfields Agreement 2013, which would now serve as a basis for employment terms and conditions between the parties involved in the project. The decision underscored the importance of balancing the interests of employers and employees while ensuring that any agreement reached is fair, reasonable, and in the best interest of all parties involved.

The Trustee for the Formcon Group Trust T/A Formcon Group Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established