Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3295

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/2734)

INGRAMS AUSTRALIA PTY LTD SOUTHERN QUEENSLAND CORRECTIONAL PRECINCT STAGE 2 PROJECT AGREEMENT 2024

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

Application for approval of the Ingrams Australia Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Agreement 2024

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

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 notification time for the Agreement under s.173(2) was 12 June 2024 and the Agreement was made on 5 July 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

The Construction, Forestry and Maritime Employees Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the 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 case involved an application for approval of the Ingrams Australia Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Agreement 2024, with the Construction, Forestry and Maritime Employees Union challenging the agreement's terms. The matter was heard in the Fair Work Commission, an Australian independent statutory tribunal.

The central legal issues revolved around whether the agreement met the requirements for approval under the Fair Work Act 2009, particularly focusing on whether the agreement provided a safety net for employees and whether it complied with the procedural requirements. The union argued that the agreement failed to provide adequate protections and did not follow the correct approval process.

The Fair Work Commission examined the provisions of the agreement and found that while it provided a safety net, it did not meet the statutory requirements for procedural fairness as it was not made in good faith. Consequently, the Commission did not approve the agreement. The decision highlighted the necessity for compliance with both substantive and procedural elements of the Fair Work Act when seeking approval for enterprise agreements.

The final order of the Fair Work Commission was that the Ingrams Australia Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Agreement 2024 was not approved. This decision underscored the importance of ensuring that all enterprise agreements are made in compliance with the law, including both substantive protections for employees and procedural fairness.

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