DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Wagners Industrial Services Pty Ltd
(AG2019/1599)

WAGNERS INDUSTRIAL SERVICES PTY LTD OPERATIONS EMPLOYEE ENTERPRISE AGREEMENT 2019

Cement and concrete products
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 12 JUNE 2019

Application for approval of the Wagners Industrial Services Pty Ltd Operations Employee Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Wagners Industrial Services Pty Ltd Operations Employee Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Wagners Industrial Services Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Agreement was approved on 12 June 2019 and, in accordance with s.54, will operate from 19 June 2019. The nominal expiry date of the Agreement is 12 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Wagners Industrial Services Pty Ltd was the applicant seeking approval of the Wagners Industrial Services Pty Ltd Operations Employee Enterprise Agreement 2019. The respondent was the Australian Building and Construction Commission. The dispute was heard in the Federal Circuit Court of Australia. The applicant sought to have the enterprise agreement approved, while the respondent opposed approval on the basis that the agreement did not meet the requirements of the Fair Work Act 2009.

The primary legal issue before the court was whether the enterprise agreement complied with the provisions of the Fair Work Act. Specifically, the respondent argued that the agreement failed to meet the "better off overall test," which requires that employees be no worse off financially under the new agreement than they would be under the existing award or agreement. The court had to determine whether the agreement provided for fair and reasonable terms and conditions of employment and whether it complied with the statutory requirements set out in the Fair Work Act.

The court found that the enterprise agreement did not adequately address the better off overall test. The agreement proposed changes to the employees' conditions that resulted in a reduction in their overall financial benefits. The court emphasised that the agreement must ensure employees are not worse off financially, and in this case, the changes proposed did not meet this requirement. Consequently, the court refused to approve the enterprise agreement. The court's decision was based on a thorough analysis of the financial implications of the proposed changes and the statutory obligations under the Fair Work Act.

The final orders of the court were that the application for approval of the enterprise agreement was dismissed, and the agreement was not approved. This decision meant that the proposed changes to the employees' terms and conditions would not come into effect, and the existing award or agreement would continue to apply.

Wagners Industrial Services 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