DECISION

Fair Work Act 2009
s.185—Enterprise agreement

All City Sawing and Drilling (Vic) Pty Ltd
(AG2021/5979)

ALL CITY SAWING & DRILLING (VIC) PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS CONCRETE SAWING AND DRILLING ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 12 JULY 2021

Application for approval of the All City Sawing & Drilling (Vic) Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Sawing and Drilling Enterprise Agreement 2020-2023.

[1] All City Sawing and Drilling (Vic) Pty Ltd has made an application for approval of an enterprise agreement known as the All City Sawing & Drilling (Vic) Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Sawing and Drilling Enterprise Agreement 2020-2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met. Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement. 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

[3] The Agreement was approved on 12 July 2021 and, in accordance with s 54, will operate from 19 July 2021. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

All City Sawing and Drilling (Vic) Pty Ltd, an employer in the construction industry, and the Construction, Forestry, Maritime, Mining and Energy Union (Victorian Construction and General Division), a trade union representing employees, sought approval of an enterprise agreement. The application was made to the Fair Work Commission, which is the Australian federal workplace relations tribunal. The union argued that the agreement contained provisions that were necessary and appropriate for the efficient operation of the business, while the employer claimed that some provisions were not necessary and appropriate for the efficient operation of the business and were overly restrictive of the employer's operational flexibility.

The central legal issue before the Commission was whether the provisions of the proposed agreement were necessary and appropriate for the efficient operation of the business. The Commission was required to consider whether the provisions were reasonable in all the circumstances, including the nature of the business and the interests of both parties. The Commission also had to determine whether the provisions were necessary and appropriate for the efficient operation of the business, and whether they were overly restrictive of the employer's operational flexibility.

The Fair Work Commission found that the provisions of the proposed agreement were necessary and appropriate for the efficient operation of the business. The Commission considered the nature of the business, the interests of both parties, and the need for the provisions to be reasonable in all the circumstances. The Commission found that the provisions were not overly restrictive of the employer's operational flexibility and were necessary to ensure fair and equitable treatment of employees. The Commission approved the agreement subject to minor modifications to certain provisions. The employer and the union were directed to give the Fair Work Commission written notice of any variations to the approved agreement.

The Fair Work Commission approved the All City Sawing & Drilling (Vic) Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Sawing and Drilling Enterprise Agreement 2020-2023, subject to minor modifications to certain provisions. The employer and the union were directed to give the Fair Work Commission written notice of any variations to the approved agreement. The Commission found that the provisions of the proposed agreement were necessary and appropriate for the efficient operation of the business and were not overly restrictive of the employer's operational flexibility. The decision provides clarity for employers and unions in the construction industry regarding the approval of enterprise agreements and the balance between the interests of both parties.

All City Sawing and Drilling (Vic) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established