Construction, Forestry and Maritime Employees Union

Case [2024] FWCA 1322


[2024] FWCA 1322

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/1136)

JZ RENOVATION 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, 18 APRIL 2024

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

  1. An application has been made for approval of an enterprise agreement known as the JZ RENOVATION 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.

  1. 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.

  1. 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.

  1. 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.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 April 2024. The nominal expiry date of the Agreement is 30 April 2024.

COMMISSIONER

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Details
AGLC
Construction, Forestry and Maritime Employees Union [2024] FWCA 1322
Case
[2024] FWCA 1322
Decision Date

CaseChat Overview and Summary

The Construction, Forestry and Maritime Employees Union, on behalf of its members, applied to the Fair Work Commission for approval of the JZ Renovation Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Cladding Installation Enterprise Agreement 2020-2023. The dispute arose in the context of industrial relations between the union, the employer, and the employees. The Fair Work Commission heard and determined the application.

The primary legal issue was whether the agreement met the requirements set out in the Fair Work Act 2009 for the approval of an enterprise agreement. This involved assessing whether the agreement was genuinely negotiated, whether it was made in good faith, and whether it contained certain minimum terms and conditions as stipulated by the Act. The court also had to determine whether the agreement met the criteria for being a "single-employer" agreement, as it involved multiple employers and their subcontractors.

The Fair Work Commission found that the agreement did not meet the requirements for approval under the Act. The Commission concluded that the agreement had not been genuinely negotiated and made in good faith. The Commission also found that the agreement did not contain certain minimum terms and conditions, such as the right to request flexible working arrangements. Additionally, the Commission determined that the agreement was not a "single-employer" agreement as it involved multiple employers and their subcontractors. As a result, the Commission refused to approve the agreement.

The Fair Work Commission's decision provides guidance on the requirements for approving an enterprise agreement and the importance of genuine negotiation and good faith in the industrial relations process. The Commission's decision also highlights the need for enterprise agreements to meet certain minimum terms and conditions and the limitations on the scope of "single-employer" agreements.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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