Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 1496

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/1254)

DELTA INTERIORS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS CLADDING INSTALLATION ENTERPRISE AGREEMENT 2020-2023

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

Application for approval of the DELTA INTERIORS 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 DELTA INTERIORS 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 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 3 May 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

The parties to the case were the Construction, Forestry and Maritime Employees Union (CFMEU) and Delta Interiors Pty Ltd, who were in dispute over the terms of a proposed enterprise agreement. The matter was brought before the Fair Work Commission to seek approval for the Delta Interiors Pty Ltd and CFMEU (Victorian Construction and General Division) Subcontractors Cladding Installation Enterprise Agreement 2020-2023. The central issue before the court was whether the agreement met the requirements of the Fair Work Act 2009, specifically whether it was a "better off overall test" (BOOT) compliant agreement, which means that it should provide a net benefit to the employees it covers.

The court considered the arguments from both parties and examined the provisions of the proposed agreement. The CFMEU argued that the agreement was fair and reasonable and provided for better terms and conditions for the employees. Delta Interiors Pty Ltd argued that the agreement was not in the best interests of the employees as it would result in higher costs for the company and potentially lead to job losses. The court noted that the agreement included provisions for fair pay and conditions, as well as provisions for dispute resolution and training. The court also noted that the agreement provided for a BOOT process to be undertaken to ensure that the employees were better off overall.

After considering the arguments and evidence presented by both parties, the court found that the agreement was fair and reasonable and met the requirements of the Fair Work Act 2009. The court found that the agreement provided for better terms and conditions for the employees and was in their best interests. The court approved the agreement and ordered that it be registered with the Fair Work Commission. The agreement will now be in effect for the period of 2020 to 2023, and will provide for the terms and conditions of employment for the employees covered by the agreement.

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