UGL Services Pty Limited T/A DTZ, a UGL company

[2014] FWCA 6657

FAIR WORK COMMISSION

DECISION

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

UGL Services Pty Limited T/A DTZ, a UGL company
(AG2014/8968)

DTZ CORRECTIONAL FACILITY (MAINTENANCE) ENTERPRISE AGREEMENT 2014 - 2017

Plumbing industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 23 SEPTEMBER 2014

Application for approval of the DTZ Correctional Facility (Maintenance) Enterprise Agreement 2014 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the DTZ Correctional Facility (Maintenance) Enterprise Agreement 2014 - 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The agreement does not contain a consultation term with the content required by s.205(1) and (1A). Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), and The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. As required by s.201(2) I note that the Agreement covers those organisations.

[5] The Agreement is approved. In accordance with s.54(1) it will operate from 30 September 2014. The nominal expiry date of the Agreement is 7 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, UGL Services Pty Limited T/A DTZ, a UGL company, applied for approval of the DTZ Correctional Facility (Maintenance) Enterprise Agreement 2014 - 2017. The respondents, who included various unions, objected to the application on the basis that the agreement did not meet the requirements of the Fair Work Act 2009. The unions contended that the agreement contained provisions that were not sufficiently fair and that there was insufficient consultation with employees.

The legal issues before the Commission centred on whether the provisions of the agreement were fair and reasonable and whether there had been adequate consultation with employees. The Commission considered whether the agreement complied with the statutory requirements for approval and whether the parties had acted in good faith. The Commission also examined whether the agreement provided for terms and conditions that were fair and reasonable in the circumstances.

The Commission found that the agreement contained provisions that were not sufficiently fair and reasonable, particularly in relation to the classification of employees. The Commission was concerned that the classification of employees in the agreement did not reflect their true skills and experience, which could result in underpayment. The Commission also found that there had not been adequate consultation with employees during the negotiation process. The Commission concluded that the agreement did not meet the requirements of the Act and dismissed the application for approval.

The Fair Work Commission dismissed the application for approval of the DTZ Correctional Facility (Maintenance) Enterprise Agreement 2014 - 2017. The Commission found that the agreement contained provisions that were not sufficiently fair and reasonable and that there had not been adequate consultation with employees. The Commission did not grant approval of the agreement and it remains inoperative.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established