The decision examines the narrow line between an employer introducing preparatory measures for the creation of a new business and the management of a company established for the possibility of entering into green grassland agreements under the Fair Work Act 2009 (FW Act). On the basis of this evidence, the Vice-President concluded that the TGB had employed six people necessary for the normal behaviour of the new company before the agreement with the unions was reached. Agreements in the green grasslands must include a real new venture; a company cannot simply launch a new project and use it as a reason to negotiate an agreement in the green prairie. [3] When referring to a site, greenfields refers to a site of a company where there has been no building to date or a company operating in a market where there has been little or no previous activity. On 9 November 2018, after the expiry of the second six-month negotiation period and the non-agreement with the relevant trade unions, the joint venture asked the FWC for approval of the tunnel construction contract and the civil surface works agreement. The unions rejected the adoption of the agreements, firstly on the grounds that they did not relate to a genuine new venture in the joint venture. Greenfields agreements are generally sought when an employer has not employed employees to vote and approve an agreement on a new business. This is a typical scenario for new resource projects on previously untapped land. … the six-month period is too long to be a satisfactory circuit breaker.

This concern is reinforced if the period prior to notification and the period following a commission request for fair work are taken into account when approving an agreement. This is an unreasonable period of uncertainty that has the real potential to prevent a major resource development proposal or seriously disrupt and delay those projects or companies that wish to participate. [30] The Vice-President usefully took the following examples of acceptable and unacceptable preparatory actions: In July 2014, a Full Bench in Tutt Bryant Group Limited T/A Tutt Bryant Heavy Lift and Shift [2014] FWCFB 4342 confirmed a decision by Vice President Gostencnik that employees specifically employed for the conduct of the new company may only work with the employer after the Greenfields agreement. The nature of the activities that can be concluded (without engaging the actual work or activity of the new entity) should be particularly taken into account when negotiating an enterprise agreement, particularly when an agreement is unlikely and the legal six-month negotiating period will be required before an application for approval of the agreement is submitted to the Commission. In the recent decision of CPB Contractors Pty Limited – John Holland Pty Ltd[1], the Fair Work Commission (FWC) considered the possibility of entering into Greenfields agreements for a major Victorian infrastructure project. Where a proposed agreement on a business is an agreement in the green prairie, an employer who is a bargaining representative for the agreement may communicate in writing that the most recent case law has examined in detail some of these requirements and serves as a useful guidance for what is needed to meet the requirements.

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Last Modified: abril 10, 2021