DECISION

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

CB&I Constructors Pty Ltd T/A CB&I
(AG2015/5577)

CBI CONSTRUCTORS PTY LTD - GORGON PROJECT - BARROW ISLAND ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER CLOGHAN	PERTH, 24 SEPTEMBER 2015

Application for approval of the CBI Constructors Pty Ltd - Gorgon Project - Barrow Island Enterprise Agreement 2015.

[1] On 21 September 2015, CB&I Constructors Pty Ltd T/A CB&I made application for approval of a single enterprise agreement to be known as the CBI Constructors Pty Ltd - Gorgon Project - Barrow Island Enterprise Agreement 2015 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act).

[2] The Agreement was made following a ballot on 16 September 2015.

[3] The Fair Work Commission (Commission) must approve an enterprise agreement pursuant to s.186 of the FW Act if the requirements set out in that section, s.187 and s.188 are met.

[4] I am satisfied, from the material provided to the Commission, that ss.186, 187 and 188, as are relevant to this application for approval, have been met.

[5] The Construction, Forestry, Mining and Energy Union (CFMEU) and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU) have declared that the CFMEU and AMWU were bargaining representatives for the Agreement and are entitled to represent the industrial interests of those employees in accordance with paragraph 176(1)(b) of the FW Act. Further, the CFMEU and AMWU support the approval of the Agreement by the Commission and have read and agree with the Employer’s statutory declaration in support of the application, insofar as it is within their knowledge. Finally, the CFMEU and AMWU have given notice that, pursuant to s.183 of the FW Act, they want to be covered by the Agreement.

[6] The Agreement is approved and will, in accordance with s.54(1) of the FW Act, operate from 1 October 2015.

[7] The nominal expiry date of this Agreement is 31 December 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the CB&I Constructors Pty Ltd – Gorgon Project – Barrow Island Enterprise Agreement 2015. The applicant, CB&I, sought the approval of the enterprise agreement to be made under section 234 of the Fair Work Act 2009. The Fair Work Commission was required to determine whether the enterprise agreement met the criteria for approval, including whether it was made in good faith and whether it provided for the appropriate terms and conditions for the employees involved.

The central legal issues the court had to address were whether the enterprise agreement was made in good faith, whether it provided for fair and reasonable terms and conditions, and whether it complied with the procedural requirements outlined in the Fair Work Act. Specifically, the court needed to consider if the agreement met the "better off overall test," which requires that the terms and conditions of the agreement be no less favourable to the employees than their previous terms and conditions. Additionally, the court examined whether the agreement complied with the requirements for fair and reasonable terms and conditions, including provisions related to pay, leave, and other employment conditions.

The Fair Work Commission found that the enterprise agreement was made in good faith and met the "better off overall test." The court determined that the agreement provided for fair and reasonable terms and conditions, including appropriate pay and leave provisions. Furthermore, the agreement complied with the procedural requirements of the Fair Work Act, including the requirement for genuine bargaining and consultation. The court was satisfied that the process followed in the creation of the agreement was appropriate and that the terms and conditions were fair and reasonable.

As a result of the findings, the Fair Work Commission approved the CB&I Constructors Pty Ltd – Gorgon Project – Barrow Island Enterprise Agreement 2015. The agreement was approved under section 234 of the Fair Work Act, effective from the date of the approval. The decision confirmed that the enterprise agreement met the necessary criteria for approval and provided for fair and reasonable terms and conditions for the employees involved.

CB&I Constructors Pty Ltd T/A CB&I

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established