DECISION

Fair Work Act 2009
s.185—Enterprise agreement

VEC Civil Engineering Pty Ltd
(AG2021/153)

VEC CIVIL ENGINEERING PTY LTD ENTERPRISE AGREEMENT 2020-2023 (STRUCTURES & STEEL)

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 25 FEBRUARY 2021

Application for approval of the VEC Civil Engineering Pty Ltd Enterprise Agreement 2020-2023 (Structures & Steel).

[1] An application has been made for approval of an enterprise agreement known as the VEC Civil Engineering Pty Ltd Enterprise Agreement 2020-2023 (Structures & Steel) (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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 March 2021. 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

In the matter of VEC Civil Engineering Pty Ltd, the Fair Work Commission was asked to approve an enterprise agreement proposed by the employer. The agreement, titled "VEC Civil Engineering Pty Ltd Enterprise Agreement 2020-2023 (Structures & Steel)", was contested by the unions representing the employees, who raised concerns about certain terms and conditions. The Commission's task was to determine whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The central legal issues revolved around whether the proposed agreement provided for fair and reasonable terms and conditions of employment, including minimum rates of pay, overtime rates, penalty rates, maximum weekly hours, shift allowances, and provisions for rest breaks and long service leave. The unions argued that the agreement did not sufficiently address these issues and did not provide for fair and reasonable terms and conditions.

The Commission considered the provisions of the Fair Work Act 2009, which mandate that enterprise agreements must not provide for terms and conditions that are less favourable than the relevant award or safety net award. The Commission also examined the principle of good faith bargaining and whether the agreement reflected a genuine attempt to reach an agreement. After reviewing the evidence and submissions from both parties, the Commission concluded that the proposed agreement did provide for fair and reasonable terms and conditions. The Commission found that the agreement met the requirements for approval under the Act, and it was approved.

The Fair Work Commission approved the "VEC Civil Engineering Pty Ltd Enterprise Agreement 2020-2023 (Structures & Steel)" as it was in compliance with the legal requirements set out in the Fair Work Act 2009. The agreement was deemed to provide for fair and reasonable terms and conditions of employment, and it was approved by the Commission. The approval of the agreement will now govern the employment conditions of the employees covered by the agreement for the period 2020-2023.

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