Application for approval of the Downer EDI Works Pty Ltd South Coast Enterprise Agreement 2025

[1] Downer EDI Works Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Downer EDI Works Pty Ltd South Coast Enterprise Agreement 2025 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The Agreement will apply to employees who are covered by either the Asphalt Industry Award 2020 (Asphalt Award) or the Manufacturing and Associated Industries and Occupations Award 2020 (Manufacturing Award).

[3] The Agreement does not contain a workplace delegates' rights term, as required by s. 205A(1) of the Act. Pursuant to s. 205A(2) of the Act, the workplace delegates' rights term from clause 26A of the Asphalt Award and clause 40A of the Manufacturing Award are taken to be a term of the Agreement. A copy of the workplace delegates' rights term can be found in Appendix 3.

[4] Clause 18.5 of the Agreement refers to apprentices with respect to redundancy; however, rates of pay have not been provided. The Employer submitted that no apprentices are currently engaged and there is no intention to engage apprentices during the life of the Agreement. I am therefore satisfied that it is reasonably foreseeable that the Employer will not employ an apprentice during the life of the Agreement.

[5] The Commission raised the following issues with the Employer which are relevant to whether employees are better off overall under the Agreement compared to the relevant Award:

1. The Agreement is silent on pay for higher duties. Clause 15.2 of the Asphalt Award and clause 20.2 of the Manufacturing Award provide that an employee required by the employer to perform the work of a position at a higher classification level must be paid at the rate applicable for that higher level for all work done on that day/shift.

2. Clause 17 of the Asphalt Award contains various allowances that are included in the wage rates of the Agreement, including an overtime meal allowance of $19.71 per occasion. Depending on the employees' roster patterns, part time and casual employees may not be compensated for this reduction.

1. Clause 20.2 of the Asphalt Award provides for a Shift Allowance of 30% for permanent Night Shift, compared to the $70 night allowance per night under clause 11.3 of the Agreement. Clause 21.3 of the Asphalt Award provides for annual leave loading of 17.5% of the employee's ordinary hourly rate, or the shift penalty rate that would have been payable if the employee was a shiftworker, whichever is greater, compared to the flat loading of 17.5% provided at clause 16.4 of the Agreement. The rates of pay in the Agreement do not appear to compensate for this reduction for a Level 4 employee when both apply simultaneously.

1. Clause 17.3 (d)-(g) of the Asphalt Award provides for the following provisions which are not conferred by the Agreement:
   • reimbursement of reasonable fares if sent from city to country or one country centre to another or vice versa;
   • Return home allowance to return home from distant work for a weekend; and
   • Payment of travelling time for Distant Work.

2. The Manufacturing Award contains various allowances that are included in the wage rates of the Agreement. Depending on the employee's roster pattern, a Level 4 employee may be not compensated for these reductions.

3. The Manufacturing Award provides for non-successive afternoon or night shift to be paid for at 150% of the ordinary hourly rate for the first 2 hours and 200% of the ordinary hourly rate for the remaining hours, whereas the Agreement provides for the shift to be paid at 150%. A Level 4 Employee does not appear to be compensated for this reduction.

[6] The Employer provided written undertakings and submissions to address the above BOOT issues. A copy of the undertakings is attached in Schedule 1. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

[7] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[8] The Australian Workers' Union (AWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it.

[9] In accordance with s.201(2), I note that the Agreement covers the AWU.

[10] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 December 2025. The nominal expiry date of the Agreement is 2 December 2028.

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