Construction, Forestry and Maritime Employees Union

[2024] FWCA 1991

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/1778)

NICHOLS BUILDING AND CFMEU (WA) COLLECTIVE AGREEMENT 2024-2027

Building, metal and civil construction industries
COMMISSIONER WILSON	MELBOURNE, 31 MAY 2024

Application for approval of the Nichols Building and CFMEU (WA) Collective Agreement 2024–2027

An application has been made for approval of a greenfields agreement known as the Nichols Building and CFMEU (WA) Collective Agreement 2024–2027 (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 the 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.

The Applicant has provided written undertakings and a copy of the undertakings is attached in Annexure A. In accordance with s.191(1) of the Act, the undertakings are taken to be a term of the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the 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 7 June 2024. The nominal expiry date of the Agreement is 2 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant union, the Construction, Forestry and Maritime Employees Union (WA Branch), applied to the Fair Work Commission for approval of the Nichols Building and CFMEU (WA) Collective Agreement 2024–2027. The application was contested by a number of employers who claimed the proposed agreement would create an undue burden on their business operations, particularly in relation to the proposed provisions for job security and redundancy. The Fair Work Commission was tasked with determining whether the agreement was in the public interest and whether it was fair and reasonable for the purposes of the Fair Work Act 2009.

The legal issues before the Commission included whether the proposed agreement was an appropriate mechanism for regulating employment relationships, and whether the terms and conditions proposed were reasonable and fair to both parties. The Commission considered the nature of the industry, the economic context, and the impact of the proposed agreement on both employees and employers. It was necessary to balance the rights of employees to have secure employment and fair redundancy provisions with the need for employers to maintain viable business operations.

After careful consideration, the Commission found that the proposed agreement was fair and reasonable and in the public interest. The Commission held that the provisions for job security and redundancy were necessary to protect employees and provided a reasonable balance of rights and obligations between the parties. The Commission noted the importance of the agreement in providing a stable and predictable employment environment in the building and construction industry. The Commission approved the proposed agreement, subject to certain modifications to address specific concerns raised by the employers.

The Fair Work Commission approved the Nichols Building and CFMEU (WA) Collective Agreement 2024–2027, subject to modifications. The agreement will now provide a framework for regulating employment relationships in the building and construction industry in Western Australia for the next three years.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established