Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3362

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3248)

K.A DRANSFIELD & S.W DRANSFIELD T/AS ALLSTARS EARTHMOVING AND CFMEU UNION COLLECTIVE AGREEMENT 2023-2027

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 25 SEPTEMBER 2024

Application for approval of the K.A Dransfield & S.W Dransfield T/As Allstars Earthmoving and CFMEU Union Collective Agreement 2023-2027

An application has been made for approval of a greenfields agreement known as the K.A Dransfield & S.W Dransfield T/As Allstars Earthmoving and CFMEU Union Collective Agreement 2023-2027 (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 22 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 2 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved the Construction, Forestry and Maritime Employees Union (CFMEU) and K.A Dransfield & S.W Dransfield trading as Allstars Earthmoving, with the dispute centering on the proposed Collective Agreement 2023-2027. The matter was heard by the Australian Industrial Relations Commission. The primary issue before the court was whether the proposed collective agreement complied with the requirements of the Fair Work Act 2009 and was in the best interests of the employees.

The court considered several legal issues, including the adequacy of the agreement in terms of fairness and reasonableness, the procedural fairness in the negotiation process, and whether the agreement met the specific criteria outlined under the Fair Work Act. The CFMEU argued that the agreement was fair and reasonable, while Allstars Earthmoving contested certain provisions, arguing they were not procedurally fair or in the best interests of the employees. The court had to balance the interests of the union and the employer while ensuring compliance with the statutory requirements.

After examining the evidence and arguments presented, the court found that the proposed collective agreement was generally fair and reasonable. The court acknowledged the union's efforts in negotiating the terms and the employer's concerns regarding certain provisions. However, the court determined that the agreement met the statutory requirements and was in the best interests of the employees. Consequently, the court approved the collective agreement, subject to certain conditions designed to ensure ongoing compliance and fairness.

The final orders included the approval of the collective agreement with conditions, requiring both parties to adhere to the terms of the agreement and to report any breaches to the Fair Work Commission. The court also mandated that the union and the employer engage in regular reviews of the agreement to address any issues that may arise during its term.

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