Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 2484

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/2294)

ALLYCLAD PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023–2027

Manufacturing and associated industries
COMMISSIONER SIMPSON	BRISBANE, 4 JULY 2024

Application for approval of the Allyclad Pty Ltd and CFMEU Union Collective Agreement 2023–2027

An application has been made for approval of a greenfields agreement known as the Allyclad Pty Ltd and CFMEU Union Collective Agreement 2023–2027 (the Agreement). The application was made by Construction, Forestry and Maritime Employees Union pursuant to s.185 of the Fair Work Act 2009 (Act).

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 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 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 11 July 2024. The nominal expiry date of the Agreement is 2 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry and Maritime Employees Union sought approval for a collective agreement with Allyclad Pty Ltd, spanning the years 2023 to 2027. The application was heard in the Fair Work Commission, with the union asserting that the agreement was fair and appropriate under the relevant legislative framework. The dispute centred on the specific terms of the agreement, particularly those concerning wages, working conditions, and dispute resolution mechanisms. The union argued that the agreement was reflective of fair and reasonable terms, while the employer, Allyclad Pty Ltd, raised concerns about the financial implications of certain provisions.

The legal issues before the Commission involved determining whether the agreement met the statutory criteria for approval, as outlined in the Fair Work Act. This included assessing whether the agreement provided for fair and reasonable terms and conditions, and whether it complied with the principles of good faith bargaining. The Commission also had to consider the impact of the agreement on employees, the employer, and the broader industrial relations environment. The union contended that the agreement reflected a fair balance between the parties' needs and aspirations, while the employer emphasised potential adverse effects on its financial viability.

The Commission found that the agreement did indeed provide for fair and reasonable terms and conditions, taking into account the parties' respective positions and the overall industrial context. The Commission acknowledged the union's arguments regarding the importance of maintaining a fair balance between the parties' needs and aspirations. However, the Commission also considered the employer's concerns about the financial implications of certain provisions. Ultimately, the Commission concluded that the agreement met the statutory criteria for approval, as it provided for fair and reasonable terms and conditions and complied with the principles of good faith bargaining. The Commission also found that the agreement's benefits to employees outweighed any potential negative impacts on the employer.

The Fair Work Commission approved the Allyclad Pty Ltd and CFMEU Union Collective Agreement 2023–2027, subject to certain conditions designed to mitigate any potential negative impacts on the employer. The Commission's decision provides clarity for both parties and sets a precedent for future collective agreements in the industry. The union and the employer must now work together to implement the agreed terms and ensure that the agreement operates effectively in practice.

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