Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3361

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3169)

DYNAMIC HYDRO EXCAVATIONS PTY LTD SOUTHERN QUEENSLAND CORRECTIONAL PRECINCT STAGE 2 PROJECT AGREEMENT 2024

Miscellaneous
DEPUTY PRESIDENT MASSON	MELBOURNE, 25 SEPTEMBER 2024

Application for approval of the Dynamic Hydro Excavations Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Agreement 2024

An application has been made for approval of a greenfields agreement known as the Dynamic Hydro Excavations Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Agreement 2024 (the Agreement). The application was made by the Construction, Forestry and Maritime Employees Union pursuant to s.185 of the Fair Work Act 2009 (Act).

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The Agreement was made on 19 August 2024. Accordingly, the better off overall test requirements are those applying on and from 6 June 2023.

This is a greenfields agreement that meets the requirements of section 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 have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Construction, Forestry and Maritime Employees Union is 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. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the Construction, Forestry and Maritime Employees Union and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 October 2024. The nominal expiry date of the Agreement is 1 January 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry and Maritime Employees Union applied to the Fair Work Commission for the approval of the Dynamic Hydro Excavations Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Agreement 2024. The dispute arose from the negotiations between the Union and Dynamic Hydro Excavations Pty Ltd concerning the terms and conditions of employment for workers engaged on the Southern Queensland Correctional Precinct Stage 2 Project. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the agreement provided for fair and reasonable terms and conditions of employment. This involved examining whether the agreement met the requirements set out in section 235 of the Fair Work Act, which includes provisions for minimum wages and conditions, dispute resolution, and other employment terms. The Commission also considered whether the agreement appropriately balanced the interests of the employees and the employer, ensuring fairness and reasonableness in the context of the project's specific needs and the broader labour market conditions.

The Fair Work Commission found that the agreement satisfied the criteria for approval. The Commission noted that the agreement provided for wages and conditions that were not less favourable than the relevant awards and included provisions for dispute resolution. The Commission also found that the agreement was appropriate for the specific circumstances of the project, taking into account the need for flexibility and efficiency in the construction environment. The Commission concluded that the agreement was fair and reasonable, and thus met the statutory requirements for approval.

Accordingly, the Fair Work Commission approved the Dynamic Hydro Excavations Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Agreement 2024. The Commission's decision confirmed that the agreement was suitable for the unique context of the project and appropriately balanced the interests of both the employees and the employer. This approval allows the agreement to be used as a basis for employment under the Fair Work Act, providing certainty and stability for all parties involved in the project.

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