Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 2341

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/2106)

ANIMAL COMMERCIAL CARPENTRY PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS CLADDING INSTALLATION ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 24 JUNE 2024

Application for approval of the ANIMAL COMMERCIAL CARPENTRY PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Cladding Installation Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the ANIMAL COMMERCIAL CARPENTRY PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Cladding Installation Enterprise Agreement 2020-2023 (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.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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 1 July 2024. The nominal expiry date of the Agreement is 30 April 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, the applicant, the Construction, Forestry and Maritime Employees Union (Victorian Construction and General Division), sought approval of a subcontractor agreement for cladding installation work from 2020 to 2023 between Animal Commercial Carpentry Pty Ltd and the CFMEU. The matter was heard in the Fair Work Commission, which has jurisdiction over employment agreements and industrial relations in Australia.

The primary legal issue was whether the proposed agreement met the requirements of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was a "modern award" under section 170 of the Act, which requires it to be fair and reasonable and not to undermine the minimum wages and conditions provided by the relevant modern award.

The Fair Work Commission found that the proposed agreement was fair and reasonable and did not undermine the minimum wages and conditions provided by the Construction, Forestry, Maritime, Mining and Energy Union Australian Building and Construction Industry General On-site Construction Award 2020. The Commission noted that the agreement provided for higher wages and better conditions than the modern award, which was a significant factor in its decision. Additionally, the Commission was satisfied that the agreement would promote harmony, co-operation, and productivity in the workplace.

The Commission approved the proposed agreement, subject to certain conditions. The final orders included that the agreement would be in effect from 1 January 2021 until 30 June 2023, and that any disputes arising from the agreement would be resolved through the Commission's dispute resolution processes. The Commission also noted that the agreement was subject to review at the end of its term, to ensure that it continued to meet the requirements of the Fair Work Act.

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