DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2020/80)

A. OK BROTHERS CONSTRUCTIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2019 - 2020

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 29 JANUARY 2020

Application for approval of the A. OK BROTHERS CONSTRUCTIONS PTY LTD and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2019 - 2020.

[1] An application has been made for approval of an enterprise agreement known as the A. OK BROTHERS CONSTRUCTIONS PTY LTD and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2019 - 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Maritime, Mining and Energy Union. The Agreement is a single enterprise agreement.

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

[3] The Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 February 2020. The nominal expiry date of the Agreement is 31 January 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter under consideration involved A. OK BROTHERS CONSTRUCTIONS PTY LTD and the CFMEU (Victorian Construction and General Division), with the focus on the Enterprise Agreement for the years 2019 to 2020. The dispute centred on the application for the approval of this agreement, which was necessary for its legal enforceability. The application was heard by the Fair Work Commission (FWC), an entity with jurisdiction over such matters under Australian labour law.

The legal issues that required resolution included whether the Enterprise Agreement met the statutory requirements set forth in the Fair Work Act 2009, particularly regarding its coverage, the process through which it was negotiated, and its compliance with the 'better off overall test'. The latter test mandates that the terms of the agreement must not disadvantage employees relative to their previous conditions. The negotiation process and the fairness of the terms were also scrutinised to ensure they adhered to the principles of good faith bargaining.

The Commission examined the evidence presented by both parties, assessing the negotiation process, the content of the agreement, and its impact on the employees. It concluded that the agreement was appropriately negotiated in good faith and that the terms were fair and reasonable. The Commission found that the agreement did not disadvantage employees and met the better off overall test. Therefore, the application for approval was successful. The Commission certified the Enterprise Agreement, making it legally binding on both the employer and the employees.

A. OK BROTHERS CONSTRUCTIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2019 - 2020

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established