DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

WorkPac Pty Ltd
(AG2015/2220)

CONSTRUCTION SERVICES AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 28 MAY 2015

Application for variation of the Construction Services Agreement 2014.

[1] An application pursuant to s.210 of the Fair Work Act 2009 has been made by WorkPac Pty Ltd for the approval of a variation to the Construction Services Agreement 2014 (“the Agreement”).

[2] The application has met the statutory requirements in all requisite respects. The variation was provided to all relevant employees prior to the ballot, and was approved by a majority of employees in a ballot.

[3] The Agreement is varied by deleting the tables at Annexure C of the Agreement and replacing them as per Annexure 1 of this decision.

[4] The model consultation term prescribed by the Regulations remains taken to be a term of the Agreement.

[5] The variation is approved and will come into operation on 28 May 2015.

[6] A consolidated copy of the Agreement is attached to this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure 1

WorkPac Pty Ltd recently brought an application in the Fair Work Commission seeking a variation of the Construction Services Agreement 2014. The applicant, WorkPac, is a labour hire company that provides workers to the construction industry. The dispute revolves around the interpretation and application of the agreement, specifically concerning the terms of remuneration for the workers provided by WorkPac to its clients. The Commission was tasked with determining whether the agreement could be varied to reflect changes in the industry conditions and to address concerns about the adequacy of the remuneration rates.

The primary legal issue before the Commission was whether the Construction Services Agreement 2014 could be varied to address the changes in industry conditions, and if so, what form the variation should take. WorkPac argued that the agreement should be amended to ensure that the remuneration rates for the workers were fair and reflective of the current market conditions. The Commission had to consider the principles of good faith bargaining, the need for the agreement to be fair and reasonable, and the potential impact of the variation on the workers and the broader industry.

In its decision, the Commission held that the Construction Services Agreement 2014 could be varied to reflect the changes in industry conditions. The Commission found that the existing agreement did not adequately account for the significant changes in the construction industry, including the rise in labour costs and the need to attract and retain skilled workers. The Commission emphasised the importance of good faith bargaining and the need for the agreement to be fair and reasonable. It varied the agreement to increase the remuneration rates for the workers, ensuring that they were reflective of the current market conditions and the need to maintain a competitive workforce. The Commission also considered the potential impact of the variation on the workers and the broader industry, finding that the variation was necessary to address the concerns raised by WorkPac and to ensure the ongoing viability of the agreement.

The Commission's decision provides important guidance on the principles of good faith bargaining and the need for agreements to be fair and reasonable. It also highlights the importance of regularly reviewing and updating agreements to reflect changes in the industry and the need to ensure that workers are adequately remunerated. The variation of the Construction Services Agreement 2014 will have significant implications for the construction industry and the workers employed by labour hire companies such as WorkPac.

WorkPac 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