Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3446

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3626)

JABIL COMMERCIAL DIVING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023–2027

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 2 OCTOBER 2024

Application for approval of the Jabil Commercial Diving Pty Ltd and CFMEU Union Collective Agreement 2023–2027

The Construction, Forestry and Maritime Employees Union (CFMEU) has made an application for approval of an enterprise agreement known as the Jabil Commercial Diving Pty Ltd and CFMEU Union Collective Agreement 2023–2027 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

The CFMEU, being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by s 201(2), I note that the Agreement covers the CFMEU.

The Agreement was approved on 2 October 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry and Maritime Employees Union (CFMEU) applied to the Fair Work Commission (FWC) for approval of the Jabil Commercial Diving Pty Ltd and CFMEU Union Collective Agreement 2023–2027. The dispute arose under the Fair Work Act 2009, which allows for the creation of agreements that regulate employment conditions between employers and employees. The FWC was tasked with determining whether the agreement met the legal requirements for registration and approval.

The primary legal issues before the FWC were whether the agreement was a "registered agreement" as defined by the Act and whether it complied with the good faith bargaining provisions. The FWC considered whether the agreement was made in good faith, if it provided for a fair and efficient method of determining employees' terms and conditions of employment, and if it complied with the "better off overall test." This test requires that the agreement must be at least as good as the applicable awards or other industrial instruments.

The FWC found that the agreement was made in good faith and satisfied the requirements for registration. The agreement provided for a fair and efficient method of determining the employees' terms and conditions of employment. It also met the better off overall test, as employees would be at least as well off under the agreement as they would be under the applicable awards or other industrial instruments. The FWC approved the agreement, recognising it as a registered agreement under the Act.

The FWC's decision highlights the importance of good faith bargaining and the application of the better off overall test in the approval of collective agreements. The decision provides guidance for employers and unions on the requirements for creating and registering agreements that meet the legal standards set by the Fair Work Act 2009.

Construction, Forestry and Maritime Employees Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established