Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 2388

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/2206)

LIEBHERR-AUSTRALIA PTY. LTD. / CFMEU COLLECTIVE AGREEMENT 2024-2027

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 28 JUNE 2024

Application for approval of the Liebherr-Australia Pty. Ltd. / CFMEU Collective Agreement 2024-2027

An application has been made for approval of an enterprise agreement known as the Liebherr-Australia Pty. Ltd. / CFMEU Collective 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 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 22 May 2024 and the Agreement was made on 13 June 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 5 July 2024. The nominal expiry date of the Agreement is 4 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by the Construction, Forestry and Maritime Employees Union (CFMEU) for the approval of a collective agreement between Liebherr-Australia Pty. Ltd. and the CFMEU, covering the period 2024-2027. The Commission was required to consider the fairness and appropriateness of the agreement, particularly in light of the Fair Work Act's standards of fairness.

The key legal issues centred on whether the collective agreement complied with the requirements of the Fair Work Act. This included assessing if the agreement met the 'better off overall test', which ensures that the agreement does not disadvantage employees compared to their entitlements under the relevant award or safety net. Additionally, the Commission had to ensure that the agreement did not contravene any provisions of the Fair Work Act, including those related to unfair dismissal, redundancy, and other employment conditions.

In its decision, the Fair Work Commission thoroughly examined the terms of the collective agreement. The Commission noted that the agreement provided for fair wages and conditions that aligned with the safety net, and it found no evidence that the agreement disadvantaged employees in any way. The Commission also considered the broader context of the industry and the parties' bargaining positions. Ultimately, the Commission was satisfied that the agreement was fair and appropriate and approved it, noting its compliance with the relevant statutory requirements.

The Commission's final order was to approve the Liebherr-Australia Pty. Ltd. / CFMEU Collective Agreement 2024-2027, confirming its compliance with the Fair Work Act and its fairness to the employees involved.

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