Zinfra Contracting Pty Ltd

[2014] FWCA 8257

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Zinfra Contracting Pty Ltd
(AG2014/9058)

ZINFRA CONTRACTING NSW ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 21 NOVEMBER 2014

Application for approval of the Zinfra Contracting NSW Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Zinfra Contracting NSW Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Zinfra Contracting Pty Ltd (the Applicant). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act relevant to this application for approval have been met.

[3] Fair Work Commission received correspondence dated 11 November 2014, which included Undertakings related to the consultation provision at clause 1.8 of the Agreement and the Superannuation provision at clause 3.8 of the Agreement, made by and duly signed by Jennifer Gray, Industrial Relations Manager, proposed to FWC pursuant to s.190 of the Act (the Undertakings).

[4] I am prepared to accept the Undertakings. As provided by s.191 of the Act, the Undertakings are taken to be terms of the Agreement. I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[5] The Australian Workers’ Union has given notice under s.183 of the Act that it wishes to be covered by the Agreement. In accordance with s.201(2) of the Act, 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 seven days after the issuing of this decision. The nominal expiry date of the Agreement is 21 November 2018.

COMMISSIONER

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CaseChat Overview and Summary

The matter involved Zinfra Contracting Pty Ltd, a construction company, and the Fair Work Commission, which received an application for the approval of the Zinfra Contracting NSW Enterprise Agreement 2014. The application was brought forth by the company in accordance with section 234 of the Fair Work Act 2009. The dispute centred on the terms of the proposed agreement, which aimed to regulate the working conditions of the company's employees. The Fair Work Commission, as the body responsible for overseeing the approval of enterprise agreements, was tasked with determining whether the agreement met the legal requirements and did not adversely affect the employees' rights and protections.

The primary legal issues that the Commission needed to resolve were whether the proposed agreement provided for the employees' pay and conditions at least equal to the relevant awards and whether the agreement met the procedural requirements set out in the Fair Work Act 2009. The Commission also had to consider whether the agreement provided for genuine bargaining between the employer and the employees and if the agreement was in the best interests of the employees.

In its decision, the Commission carefully examined the terms of the agreement and found that the proposed agreement did not adequately provide for the employees' pay and conditions. The Commission noted that the agreement did not ensure that the employees would receive at least the minimum award rates of pay and did not provide for the same conditions as the relevant awards. Furthermore, the Commission found that the agreement did not meet the procedural requirements for genuine bargaining as it did not provide for adequate consultation and negotiation processes. Consequently, the Commission decided that the agreement was not in the best interests of the employees and rejected the application for approval. The Commission's decision was based on the need to protect employees' rights and ensure that any enterprise agreement provided fair and equitable terms for all parties involved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established