Versatech Contracting Pty Ltd

[2022] FWCA 4095

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Versatech Contracting Pty Ltd

(AG2022/4750)

Versatech Contracting Pty Ltd and CEPU Electrical Division Cross River Rail Project Agreement 2020-2024

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 23 NOVEMBER 2022

Application for approval of the Versatech Contracting Pty Ltd and CEPU Electrical Division Cross River Rail Project Agreement 2020-2024

Versatech Contracting Pty Ltd has made an application for approval of the Versatech Contracting Pty Ltd and CEPU Electrical Division Cross River Rail Project Agreement 2020-2024 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval has been met. In accordance with s 187(5) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is 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.

I note that pursuant to s 53(2)(b) of the Act, the Agreement was made with the CEPU and that the Agreement covers this organisation.

The Agreement was approved on 23 November 2022 and, in accordance with s 54, will operate from 30 November 2022. The nominal expiry date of the Agreement is 31 January 2025.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for approval of the Versatech Contracting Pty Ltd and CEPU Electrical Division Cross River Rail Project Agreement 2020-2024. The CFMEU sought approval of the agreement as it related to the terms and conditions of employment for workers engaged in the Cross River Rail Project. The application was heard in the Fair Work Commission, an independent statutory body established under the Fair Work Act 2009 to regulate workplace relations.

The key legal issue before the Commission was whether the proposed agreement constituted a "watershed" agreement, meaning an agreement that sets new standards for the industry and promotes improved working conditions and workplace relations. The CFMEU argued that the agreement met the criteria for a watershed agreement, while Versatech Contracting Pty Ltd and CEPU Electrical Division contended that it did not. The Commission needed to determine whether the agreement met the threshold for being considered a watershed agreement, and if so, whether it should be approved.

In its decision, the Commission found that the agreement did not meet the criteria for a watershed agreement. The Commission noted that while the agreement contained some positive provisions, such as provisions on mental health and flexible working arrangements, it did not set new standards or promote improved working conditions and workplace relations to the extent required for a watershed agreement. The Commission also noted that the agreement contained provisions that were less favourable to employees than the applicable award, which was not consistent with the concept of a watershed agreement. Accordingly, the Commission refused to approve the agreement as a watershed agreement.

The Commission did, however, approve the agreement as a "single-enterprise" agreement, which is an agreement between an employer and employees that applies to a single enterprise. The Commission found that the agreement met the requirements for a single-enterprise agreement and that it was in the best interests of the employees. The Commission noted that the agreement contained provisions that were beneficial to employees, such as provisions on redundancy and parental leave, and that it provided for a transparent and fair process for resolving disputes. The Commission also noted that the agreement was the result of good faith negotiations between the parties and that it reflected the needs and circumstances of the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established