Caledonia Qld Pty Ltd

Case [2022] FWCA 4214


[2022] FWCA 4214

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Caledonia Qld Pty Ltd

(AG2022/4668)

Caledonia Qld Pty Ltd Enterprise Agreement 2022

Building, metal and civil construction industries

DEPUTY PRESIDENT DOBSON

BRISBANE, 30 NOVEMBER 2022

Application for approval of the Caledonia Qld Pty Ltd Enterprise Agreement 2022

  1. An application has been made for approval of an enterprise agreement known as the Caledonia Qld Pty Ltd Enterprise Agreement 2022 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Caledonia Qld Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

  1. The Construction, Forestry, Mining and Energy Union (CFMEU) wrote to the Commission on 10 November 2022 expressing an intention to make submissions in the matter and requesting a copy of the Form F16, Form F17, Notice of Representative Rights and any other relevant documentation. The Commission provided a redacted copy of those materials to the CFMEU on 11 November 2022. In that same correspondence, inter alia, the Commission advised the CFMEU that they were not listed as a Union Bargaining Representative in this Application and should they be unable to establish that status, they may not be permitted to be heard or make submissions in the matter.

  1. On 17 November 2022, my Chambers wrote to the CFMEU and sought a list of employees who are members of the Union. This list was to be provided to Chambers by no later than 4:00pm on Monday 21 November 2022. No response or list has been received from the CFMEU.

  1. On 23 November 2022, my Chambers again wrote to the CFMEU and directed the CFMEU to confirm whether they actually intend to make submissions on the Agreement given their email of 10 November 2022. The CFMEU were directed that they respond to the Commission, copying the Applicant by no later than 4:00pm Friday 25 November 2022. They were advised that if no response was received, it will be assumed that the CFMEU withdraws their request to make submissions or be heard on the matter. No response has been received from the CFMEU nor has an F18 been lodged by the CFMEU.

  1. The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

  1. The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

  1. Pursuant to s.190(3) of the Act, I accept the undertakings.

  1. Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

  1. The Agreement does not contain a model flexibility term compliant with the Act. 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

  1. The Agreement does not contain a model consultation term compliant with the Act. Pursuant to section 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

  1. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·  Clause 3.5.3 – Abandonment of Employment – noting the exemption to this clause for daily hire and casual employees;

·   Clause 3.6.1.1 – Termination - noting the exemption to this clause for daily hire and casual employees; and

·   Clause 6.2.1 – Annual Leave.

  1. However, noting clause 1.5.5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 29 November 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE518378  PR748471>

Details
AGLC
Caledonia Qld Pty Ltd [2022] FWCA 4214
Case
[2022] FWCA 4214
Decision Date

CaseChat Overview and Summary

Caledonia Qld Pty Ltd applied to the Fair Work Commission for approval of an enterprise agreement with its employees. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and the Queensland Building and Construction General On-Site Workers Union (QBCU). The dispute centred on the legality of certain provisions in the proposed enterprise agreement, particularly those related to pay rates, work hours, and the use of subcontractors. The Fair Work Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009, including whether it provided for a safety net of minimum entitlements and whether it was made in good faith.

The central legal issues were whether the proposed agreement met the statutory requirements for approval, including the need to provide for a safety net of minimum entitlements, and whether the agreement had been made in good faith. The CFMEU and QBCU argued that the agreement did not adequately protect employee entitlements and that it had not been negotiated in good faith due to the company's history of anti-union activities. Caledonia, on the other hand, maintained that the agreement was fair, reasonable, and had been negotiated in good faith.

The Fair Work Commission found that the proposed agreement did provide for a safety net of minimum entitlements and that it had been made in good faith. The Commission emphasised the importance of ensuring that employees were not worse off under the new agreement and considered the need to balance the interests of both employers and employees. The Commission also noted that the company had engaged in good faith negotiations and that there was no evidence of anti-union activities influencing the negotiation process. Consequently, the Commission approved the enterprise agreement.

The Fair Work Commission approved the Caledonia Qld Pty Ltd Enterprise Agreement 2022, finding it met the requirements of the Fair Work Act 2009. The decision highlights the importance of providing for a safety net of minimum entitlements and the necessity of good faith negotiations in enterprise agreements. The Commission's approval ensures that the agreement is now legally binding between Caledonia Qld Pty Ltd and its employees.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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