Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 1553

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/1336)

RB MAJOR PROJECTS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023–2027

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 2 MAY 2024

Application for approval of the RB Major Projects Pty Ltd and CFMEU Union Collective Agreement 2023–2027

An application has been made for approval of an enterprise agreement known as the RB Major Projects 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 the 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 8 March 2024 and the Agreement was made on 12 April 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 9 May 2024. The nominal expiry date of the Agreement is 2 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry and Maritime Employees Union (CFMEU) made an application for the approval of the RB Major Projects Pty Ltd and CFMEU Union Collective Agreement 2023–2027. The agreement was to regulate the terms and conditions of employment for workers within the RB Major Projects Pty Ltd company. The dispute centred around the procedural fairness of the negotiation process, as well as the content and fairness of the agreement itself.

The legal issues before the Commission included whether the application was made in accordance with the relevant provisions of the Fair Work Act 2009 and whether the agreement had been negotiated in good faith. Additionally, the Commission had to consider whether the terms of the agreement were fair and reasonable in the circumstances. The CFMEU argued that the negotiation process was fair and that the terms of the agreement were reasonable and in the best interests of the employees.

The Fair Work Commission found that the application for approval had been made in accordance with the Act, and that the negotiation process had been conducted in good faith. The Commission also determined that the terms of the agreement were fair and reasonable, taking into account the various factors relevant to the decision. These factors included the economic climate, the bargaining power of the parties, and the interests of the employees. The Commission approved the collective agreement, finding that it met the necessary criteria for approval.

As a result of the decision, the RB Major Projects Pty Ltd and CFMEU Union Collective Agreement 2023–2027 was approved by the Fair Work Commission, and it will now govern the terms and conditions of employment for workers within the company for the specified period. The Commission's approval ensures that the agreement is legally binding and enforceable, providing certainty and stability to both the employer and employees.

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