s.185 - Enterprise agreement

Application for approval of the Build Tech Formwork Group Enterprise Agreement 2025

• [1] Build Tech Formwork Group Pty Ltd (Build Tech) has applied for approval of a single enterprise agreement known as the Build Tech Formwork Group Enterprise Agreement 2025 (the Agreement) under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a comprehensive single-enterprise agreement covering operators, tradespersons and site managers working in, or in connection with, construction work who are covered by the Building and Construction General On-site Award 2020 (Award).

• [2] The Agreement was made with two employees who each appointed themselves as employee bargaining representatives. No union was involved in bargaining for the Agreement. Build Tech has expressed the view that the Agreement passes the better off overall test. It may be inferred that the two employees also hold that view on the basis that they each voted to approve the Agreement.

• [3] The Agreement provides some more beneficial terms and conditions of employment compared to the Award (including payment of a $2.50 per hour site allowance), but also some less beneficial terms. In correspondence with Build Tech, I raised concerns about terms dealing with part-time and casual employment, rates of pay for shift, weekend and public holiday work, and overtime.

• [4] Build Tech has given undertakings to address most, but not all, of these concerns. The outstanding matters are absence of casual loading on overtime under the Agreement in a way that is less favourable than clause 12.5 of the Award, and provision for substitution of Sunday rates where night work commences on Sunday night and continues over 7 days. No equivalent provision is found in the Award so far as it applies to work in the general building and construction sector.

• [5] On balance, I am not satisfied that casual employees will be better off overall if the Agreement applied to their employment than if the Award applied. The exclusion of casual loading on overtime means that rates of pay for the lower-level classifications of the Agreement will fall below the Award rate of pay, even after site allowance is included. The provision for substituting Sunday penalty rates for work later in the week compounds the detriment for casual employees who might be called to work in such a scenario.

• [6] The Agreement does not contain a workplace delegates rights term as required by section 205A of the Act.

• [7] I am not satisfied that the Agreement passes the better off overall test.

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