Construction, Forestry and Maritime Employees Union

[2024] FWCA 3230

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3220)

BUILT (VIC) PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) BUILDER ENTERPRISE AGREEMENT 2024 - 2027

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

Application for approval of the BUILT (VIC) Pty Ltd and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2024 - 2027

An application has been made for approval of an enterprise agreement known as the BUILT (VIC) Pty Ltd and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2024 - 2027 (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 2 July 2024 and the Agreement was made on 8 August 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 2 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved an application for the approval of an enterprise agreement between BUILT (VIC) Pty Ltd and the Construction, Forestry and Maritime Employees Union (Victorian Construction and General Division) for the period 2024 to 2027. The application was brought under the Fair Work Act 2009 and was heard in the Federal Circuit and Family Court of Australia. The primary dispute centred around whether the proposed agreement complied with the statutory requirements and whether it had been appropriately bargained and negotiated.

The court was tasked with determining whether the agreement was a genuine enterprise agreement, whether it had been made in good faith, and if it contained the necessary minimum terms and conditions as stipulated by the Act. Furthermore, the court had to consider if the agreement was in the best interests of the employees and whether any procedural fairness had been observed in the negotiation process. The union and the employer needed to demonstrate that they had followed the correct procedures and that the agreement reflected a fair and reasonable outcome for all parties involved.

In assessing the application, the court examined the evidence provided by both parties, including the negotiation records, the content of the proposed agreement, and any submissions made by interested third parties. The court determined that the agreement met all statutory requirements, was genuinely an enterprise agreement, and had been negotiated in good faith. The agreement contained all the mandated minimum terms and conditions and was deemed to be in the best interests of the employees. The court also found that the negotiation process was fair and that all relevant parties had been given an opportunity to participate and provide input. Consequently, the court approved the agreement, confirming its validity and enforceability under the Fair Work Act.

The final orders of the court included the approval of the BUILT (VIC) Pty Ltd and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2024 to 2027, with the agreement to take effect from the date of the court's decision. The court's approval signified that the agreement could now be registered with the Fair Work Commission, which would formalise its status as a registered enterprise agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established