APPLICATION FOR APPROVAL OF THE RON SOUTHON PTY LTD ENTERPRISE AGREEMENT 2025 - 2029

Application for approval of the Ron Southon Pty Ltd Enterprise Agreement 2025 - 2029

[1] An application has been made by Ron Southon Pty Limited (Applicant) for approval of an enterprise agreement known as the Ron Southon Pty Ltd Enterprise Agreement 2025 - 2029 (Agreement). The Application is made pursuant to s. 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement. The Commission must approve the agreement if the requirements in ss. 186 and 187 of the Act are met.

[2] Section 186(2)(c) requires that the terms of the Agreement do not exclude the National Employment Standards (NES). Concerns were raised about clauses 37.13-37.16,38.8, 49.7 and 27.5 of the Agreement. The applicant responded that those matters are addressed in clause 4.1 of the Agreement that is to the effect that the NES obligations in relation to those matters take precedence over any specific provision in the Agreement that might be read to give a lesser entitlement.

[3] Sections 186(2)(d) requires the Commission to be satisfied the agreement passes the better off overall test (BOOT). The test is found in s.193 of the Act and it is to be applied in accordance with s. 193A.

[4] Concerns were raised with the Applicant as to whether the Agreement passed the BOOT. In response, the Applicant has provided undertakings.

[5] A copy of the undertakings is attached (Annexure A). In accordance with s. 190(4) of the Act the views of the bargaining representatives for the agreement were sought about the undertakings. No objection was raised. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement.

[6] The undertakings made by the Applicant are extensive. They go to a range of conditions and allowances as well as the rates of pay under the Agreement. A number of the undertakings apply only to the first year of the agreement, others in respect of payrates provide modest increases in pay rates beyond the first year of the Agreement. I am required to assess the BOOT at the time of the application and I am satisfied that, given the undertakings, at present, the Agreement passes the BOOT.

[7] The term of the Agreement is 4 years, the maximum length permitted by the Act. Where certain allowances have only been adjusted in the first year of the agreement and the pay rates are only marginally above the current award rates it is likely that, during the life of the Agreement, the employees will not be better off and the Agreement will cease to satisfy the BOOT.

[8] In those circumstances it seems likely first, that s 206 of the Act will operate and require the rates of pay under an Agreement do not fall below the Award rates. Second, s 227A of the Act may have some work to do. It empowers the Commission, on application of a party to the Agreement, to reconsider the BOOT.

[9] For current purposes, however, and having regard to the undertakings, the material contained in the application and filed in relation to it, I am satisfied that each of the requirements of ss. 186 and 187 are met at the test time.

[10] The Agreement was approved on 12 August 2025 and will operate from 19 August 2025 in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 12 August 2029.

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