Alstom Limited

[2013] FWCA 8769

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

Alstom Limited
(AG2013/9977)

ALSTOM LIMITED LA TROBE VALLEY POWER STATION MECHANICAL (CFMEU) ENTERPRISE AGREEMENT 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 11 NOVEMBER 2013

Application for approval of the Alstom Limited La Trobe Valley Power Station Mechanical (CFMEU) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Alstom Limited La Trobe Valley Power Station Mechanical (CFMEU) Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Alstom Limited and the Construction, Forestry, Mining and Energy Union (CFMEU). The Agreement is a greenfields agreement.

[2] I have considered the matters contained in the employer declaration and the declaration made on behalf of the CFMEU which will be covered by the Agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the CFMEU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[4] My satisfaction as to s.186(6) is subject to written undertaking provided in relation to concerns raised by me in respect of approval of the Agreement, which is attached to this Decision as Annexure A and to the Agreement, in accordance with s.191(1)(b) are taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54, will operate from 18 November 2013. The nominal expiry date of the Agreement is 31 March 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In Alstom Limited, the Fair Work Commission was called upon to approve an enterprise agreement between Alstom and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The agreement pertained to the Alstom Limited La Trobe Valley Power Station Mechanical workforce. The crux of the dispute centred on whether the agreement met the requisite standards under the Fair Work Act 2009, including provisions for fair and reasonable terms and conditions, and whether it complied with procedural requirements.

The legal issues before the Commission included the procedural validity of the agreement, the fairness of the terms, and whether the agreement was made in good faith. The Commission had to determine if the agreement met the statutory criteria for approval, particularly given the potential impact on the employees’ terms and conditions of employment. It was also necessary to consider whether the agreement was free from any improper influence or coercion.

In its reasoning, the Commission first examined the procedural aspects of the agreement, noting that the negotiation process and consultation with employees appeared to be in line with legal requirements. The Commission then delved into the substantive fairness of the agreement's terms. After considering the evidence and submissions from both parties, the Commission found that the agreement was fair and reasonable and was made in good faith. The Commission approved the agreement, recognising its benefits for the workforce and the compliance with statutory obligations.

The final orders of the Commission were to approve the Alstom Limited La Trobe Valley Power Station Mechanical (CFMEU) Enterprise Agreement 2013, effective from the date of the decision. This approval ensured that the terms of the agreement would govern the employment conditions of the covered employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established