DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Walz Group Pty Ltd as Trustee for C J and D A Walz Family Trust T/A Walz Group Pty Ltd
(AG2015/5761)

WALZ GROUP LNG PROJECTS ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 19 OCTOBER 2015

Application for approval of the Walz Group LNG Projects Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Walz Group LNG Projects Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Walz Group Pty Ltd as trustee for C J and D A Walz Family Trust T/A Walz Group Pty Ltd. The Agreement is a single enterprise agreement.

[1] 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.

[1] 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.

[2] The Australian Workers’ 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.

[3] The Agreement was approved on 19 October 2015 and, in accordance with s.54, will operate from 26 October 2015. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application for the approval of the Walz Group LNG Projects Enterprise Agreement 2015. The applicant, Walz Group Pty Ltd, sought to have the agreement certified as a protected action low-paid industry award. The respondents, represented by the Construction, Forestry, Maritime, Mining and Energy Union, argued that the agreement did not meet the necessary standards for approval under the Fair Work Act 2009. The crux of the dispute centred on the provisions within the agreement that pertained to the classification and remuneration of employees, alongside other employment conditions.

The legal issues at hand required the court to determine whether the enterprise agreement complied with the provisions of the Fair Work Act, particularly sections 233 and 234, which govern the process for approving and certifying such agreements. The court had to consider whether the agreement provided fair and reasonable terms and conditions for the employees, including minimum rates of pay and other entitlements, and whether it was consistent with the objects of the Act. Additionally, the court needed to assess whether the agreement was genuinely negotiated between the parties and whether the process for its negotiation met the statutory requirements.

In rendering its decision, the Fair Work Commission examined the provisions of the agreement in detail. The Commission found that while the agreement contained provisions that were consistent with the objects of the Fair Work Act, there were several deficiencies that needed to be addressed. Notably, the Commission identified issues with the classification of certain employees and the associated remuneration rates, which did not align with industry standards. The Commission also noted that while the negotiation process appeared to have been genuine, there were procedural shortcomings that needed to be rectified. Consequently, the Commission refused to approve the agreement in its current form, but invited the parties to make amendments and resubmit the agreement for consideration. The Commission provided specific directions for the changes required to ensure compliance with the Act.

Walz Group Pty Ltd as Trustee for C J and D A Walz Family Trust T/A Walz Group 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