Construction, Forestry and Maritime Employees Union

[2024] FWCA 1828

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/1554)

LDB CIVIL PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) NON-DESTRUCTIVE DIGGER EARTHMOVING, EXCAVATION AND DRAINAGE ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 21 MAY 2024

Application for approval of the LDB CIVIL PTY LTD and the CFMEU (Victorian Construction and General Division) Non-Destructive Digger Earthmoving, Excavation and Drainage Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the LDB CIVIL PTY LTD and the CFMEU (Victorian Construction and General Division) Non-Destructive Digger Earthmoving, Excavation and Drainage 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 the 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 28 May 2024. The nominal expiry date of the Agreement is 30 June 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application for the approval of an enterprise agreement between LDB Civil Pty Ltd and the Construction, Forestry and Maritime Employees Union (Victorian Construction and General Division). The dispute was heard and decided by the Fair Work Commission, Australia's independent national workplace relations tribunal. The primary issue before the tribunal was whether the proposed enterprise agreement met the necessary criteria for approval under the Fair Work Act 2009. Specifically, the tribunal needed to determine if the agreement was fairly negotiated, covered the correct bargaining unit, and complied with the good faith bargaining obligations.

The Fair Work Commission examined the negotiation process and the content of the agreement to ensure it met the statutory requirements. The tribunal considered whether the union and employer had genuinely attempted to negotiate in good faith and whether the agreement was in the best interests of the employees. Additionally, the tribunal assessed if the agreement was appropriately tailored to the specific needs of the bargaining unit and adhered to the minimum standards set by the Fair Work Act. The union argued that the agreement was the product of extensive negotiations and represented the best possible outcome for its members, while the employer contended that the agreement was reasonable and reflected the commercial realities of the industry.

In reaching its decision, the tribunal found that the agreement was fairly negotiated and met the statutory criteria for approval. The tribunal acknowledged the efforts of both parties in reaching the agreement and concluded that it was in the best interests of the employees. The tribunal also determined that the agreement covered the correct bargaining unit and complied with all relevant legal requirements. Consequently, the tribunal approved the proposed enterprise agreement, recognising it as a fair and reasonable outcome for both the employees and the employer. The final orders of the tribunal mandated that the enterprise agreement be registered and enforceable, providing the framework for industrial relations between LDB Civil Pty Ltd and the Construction, Forestry and Maritime Employees Union for the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established