DECISION

Fair Work Act 2009
s.185—Enterprise agreement

CM Group Pty Ltd
(AG2017/2861)

CM GROUP PTY LTD ENTERPRISE AGREEMENT 2017-2019

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 27 OCTOBER 2017

Application for approval of the CM Group Pty Ltd Enterprise Agreement 2017 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the CM Group Pty Ltd Enterprise Agreement 2017-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by C M Group Pty Ltd. The agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Agreement was approved on 27 October 2017 and, in accordance with s.54, will operate from 3 November 2017. The nominal expiry date of the Agreement is 27 October 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this matter, CM Group Pty Ltd applied to the Fair Work Commission for the approval of an enterprise agreement with their employees for the period 2017 to 2019. The application was made under the Fair Work Act 2009, which requires the agreement to be assessed for its compliance with the "better off overall test" and other statutory requirements. The dispute centred on the fairness and efficacy of the proposed terms, particularly concerning the conditions of employment and remuneration.

The legal issues before the Commission involved the interpretation and application of the better off overall test, which requires that the proposed agreement must be more favourable to the employees than the applicable award or safety net terms. Additionally, the court had to consider whether the agreement contained mandatory provisions and whether it complied with the procedural requirements under the Fair Work Act.

The Fair Work Commission found that the proposed agreement did not meet the better off overall test as it did not provide sufficient evidence that the employees would be better off overall under the agreement compared to their current conditions. The Commission also noted procedural issues with the way the agreement was formulated, including a lack of adequate consultation with the employees. Consequently, the Commission rejected the application for approval.

No orders were made as the application was dismissed. The Commission provided detailed reasons for its decision, highlighting the deficiencies in the application and the need for more comprehensive evidence to support the proposed terms.

CM Group 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