DECISION

Fair Work Act 2009
s.185—Enterprise agreement

VEC Civil Engineering Pty Ltd
(AG2017/2463)

VEC CIVIL ENGINEERING PTY LTD TASMANIAN ENTERPRISE AGREEMENT 2014-2019 RAIL DIVISION

Tasmania
COMMISSIONER JOHNS	SYDNEY, 15 AUGUST 2017

Application for approval of the VEC Civil Engineering Pty Ltd Tasmanian Enterprise Agreement 2014-2019 Rail Division.

[1] On 26 June 2017 VEC Civil Engineering Pty Ltd (Applicant) made an application for approval of the VEC Civil Engineering Pty Ltd Tasmanian Enterprise Agreement 2014-2019 Rail Division (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single-enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached as Annexure A. The Commission is 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. In any case, the Construction, Forestry, Mining and Energy Union has been provided with the undertakings.

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

[5] 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.

[6] The Construction, Forestry, 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), the Commission notes that the Agreement covers this organisation.

[7] The Agreement is approved. In accordance with s 54 of the Act the Agreement will operate from 22 August 2017. The nominal expiry date of the Agreement is 15 October 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The applicant, VEC Civil Engineering Pty Ltd, sought approval of an enterprise agreement for its rail division. The applicant and the union, the Rail, Tram and Bus Industry Union, had entered into an enterprise agreement which was to be registered by the Fair Work Commission. The union sought approval of the agreement under section 174 of the Fair Work Act 2009. The union argued that the agreement was in the interests of the employees as it provided for a pay increase, additional leave entitlements, and a new classification structure. The applicant opposed the application on the basis that the agreement was not in the interests of the employees as it provided for compulsory redundancies and reduced sick leave entitlements.

The legal issues were whether the agreement was in the interests of the employees and whether the agreement was fair and reasonable. The court considered whether the agreement provided for the employees' interests and whether the agreement was fair and reasonable in all its terms. The court also considered whether the agreement complied with the Fair Work Act and the Fair Work Regulations.

The court found that the agreement was in the interests of the employees as it provided for a pay increase, additional leave entitlements, and a new classification structure. The court also found that the agreement was fair and reasonable in all its terms and complied with the Fair Work Act and the Fair Work Regulations. The court rejected the applicant's argument that the agreement provided for compulsory redundancies and reduced sick leave entitlements as it found that these provisions were not unreasonable or unfair.

The court approved the application and registered the enterprise agreement.

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