Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia Summary

[2022] FWCA 4020

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

(AG2022/4602)

Provon Contracting Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 17 NOVEMBER 2022

Application for approval of the Provon Contracting Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) has made an application for approval of the Provon Contracting Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval has been met. In accordance with s 187(5) of the Act, I am satisfied that the CEPU, the Australian Manufacturing Workers' Union (AMWU) and the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) are 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, and that it is in the public interest to approve the Agreement.

I note that pursuant to s 53(2)(b) of the Act, the Agreement was made with the CEPU, the AMWU and the CFMMEU and that the Agreement covers these organisations.

The Agreement was approved on 17 November 2022 and, in accordance with s 54, will operate from 24 November 2022. The nominal expiry date of the Agreement is 1 January 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission concerned an application by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the "Applicant") to approve the Provon Contracting Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020. The agreement in question was intended to regulate the employment terms and conditions of employees involved in the construction of the Southern Queensland Correctional Precinct Stage 2 Project. The Applicant sought the Commission's approval of the agreement, arguing that it met the necessary criteria under the Fair Work Act 2009.

The primary legal issue the Commission had to address was whether the proposed agreement complied with the relevant statutory provisions. Specifically, the Commission had to consider whether the agreement contained the necessary provisions to ensure it was a "better off overall test" agreement, meaning that the employees would be better off overall under the agreement than they would be under the applicable award or registered agreement. The Commission also needed to ensure that the agreement was made in good faith and that it did not undermine the protection of employees' rights.

In reaching its decision, the Commission carefully examined the terms of the agreement and the evidence provided by the Applicant and other stakeholders. The Commission noted that the agreement contained provisions that were consistent with the objectives of the Fair Work Act and that it provided for a range of benefits for employees, including wages, leave entitlements, and other conditions of employment. The Commission was satisfied that the agreement met the better off overall test and that it had been made in good faith. The Commission also found that the agreement did not undermine the protection of employees' rights and that it provided for adequate dispute resolution mechanisms.

Accordingly, the Commission approved the Provon Contracting Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020. The approval of the agreement means that it will now apply to the employees involved in the construction of the Southern Queensland Correctional Precinct Stage 2 Project, and it will regulate their employment terms and conditions. The decision of the Commission is an important recognition of the role that enterprise agreements can play in regulating the employment relationship and ensuring that employees are fairly treated in the workplace.

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established