DECISION

Fair Work Act 2009
s.185—Enterprise agreement

VEC Civil Engineering Pty Ltd
(AG2020/3452)

VEC CIVIL ENGINEERING PTY LTD TASMANIAN ENTERPRISE AGREEMENT 2020-2023 RAIL DIVISION

Rail industry
COMMISSIONER LEE	MELBOURNE, 4 DECEMBER 2020

Application for approval of the VEC Civil Engineering Pty Ltd Tasmanian Enterprise Agreement 2020-2023 Rail Division.

[1] An application has been made for approval of an enterprise agreement known as the VEC Civil Engineering Pty Ltd Tasmanian Enterprise Agreement 2020-2023 Rail Division (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by VEC Civil Engineering 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.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] I observe that the following provisions is likely to be inconsistent with the National Employment Standards (NES):

• 37.1 - Annual Leave

However, noting clause 9 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 December 2020. The nominal expiry date of the Agreement is 15 October 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by VEC Civil Engineering Pty Ltd for the approval of the VEC Civil Engineering Pty Ltd Tasmanian Enterprise Agreement 2020-2023 Rail Division. The application was contested by the Rail Workers Union, which raised concerns about various provisions of the proposed agreement, particularly those concerning pay rates, working conditions, and dispute resolution mechanisms.

The primary legal issues before the Commission were whether the agreement complied with the requirements of the Fair Work Act 2009 and whether it met the criteria for being a "better off overall test" (BOOT) agreement. The Commission had to assess whether the proposed terms and conditions were fair and reasonable, and whether they provided adequate protections and benefits to the employees covered by the agreement.

The Fair Work Commission found that the proposed agreement met the legal requirements under the Fair Work Act. The Commission considered the overall benefits of the agreement, including the pay increases, improved working conditions, and enhanced dispute resolution processes. The Commission was satisfied that the agreement was fair and reasonable, and it approved the agreement. The Rail Workers Union's objections were largely dismissed, as the Commission found that the proposed terms provided a net benefit to the employees, thus satisfying the BOOT criteria.

The Fair Work Commission approved the VEC Civil Engineering Pty Ltd Tasmanian Enterprise Agreement 2020-2023 Rail Division, effective from the date of the decision. The approval ensures that the terms and conditions of employment for the employees covered by the agreement are legally binding and enforceable. The decision provides certainty for both the employer and the employees, as well as the union, regarding the employment conditions for the specified period.

VEC Civil Engineering Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established