Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 2368

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/2173)

ADCO CONSTRUCTIONS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023–2027

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 26 JUNE 2024

Application for approval of the ADCO Constructions Pty Ltd and CFMEU Union Collective Agreement 2023-2027

An application has been made for approval of an enterprise agreement known as the ADCO Constructions Pty Ltd and CFMEU Union Collective Agreement 2023-2027 (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.

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 3 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 (CFMEU) sought approval for a collective agreement between the ADCO Constructions Pty Ltd and the union for the period 2023-2027. The application was heard in the Fair Work Commission (FWC). The CFMEU argued that the agreement was in the best interests of the employees and aligned with the principles of the Fair Work Act 2009 (Cth). The employer contested certain provisions, claiming they were detrimental to operational efficiency and financial viability.

The key legal issues centred on whether the terms of the collective agreement were fair and reasonable, in accordance with section 235 of the Fair Work Act. This required the FWC to assess whether the agreement met the 'better off overall test' (BOOT) and did not unfairly discriminate against any group of employees. The FWC had to balance the rights of employees to fair remuneration and working conditions with the employer's right to manage its business efficiently.

The FWC determined that while some provisions challenged by the employer were overly restrictive, the overall agreement provided substantial benefits to employees, such as improved wages and working conditions. The Commission found that the agreement passed the BOOT, ensuring that employees were better off overall, taking into account all benefits and detriments. Consequently, the FWC approved the collective agreement, acknowledging the importance of maintaining harmonious industrial relations.

The Fair Work Commission approved the ADCO Constructions Pty Ltd and CFMEU Union Collective Agreement 2023-2027, effective immediately. The employer was directed to implement the agreed terms, while the union was instructed to ensure compliance by its members. The decision highlighted the need for industrial agreements to reflect a balance between fair treatment of employees and operational needs of the employer.

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