Construction, Forestry and Maritime Employees Union

[2024] FWCA 840

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/477)

KO FORM PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023–2027

Building, metal and civil construction industries
COMMISSIONER SIMPSON	BRISBANE, 8 MARCH 2024

Application for approval of the KO Form Pty Ltd and CFMEU Union Collective Agreement 2023–2027

An application has been made for approval of a greenfields agreement known as the KO Form Pty Ltd and CFMEU Union Collective Agreement 2023–2027 (the Agreement). The application was made by the 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.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with 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 15 March 2024. The nominal expiry date of the Agreement is 2 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of a collective agreement between KO Form Pty Ltd and the Construction, Forestry and Maritime Employees Union (CFMEU) for the period 2023 to 2027. The Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009, including its compliance with the provisions for good faith bargaining and its alignment with the applicable minimum standards.

The central legal issue was whether the proposed collective agreement, as presented, was consistent with the statutory obligations under the Fair Work Act. This encompassed an assessment of whether the agreement was the product of genuine good faith bargaining between the parties and whether it adhered to the prescribed minimum terms and conditions of employment, ensuring that no employee was disadvantaged in comparison to the applicable award or safety net provisions.

In deliberating on the matter, the Commission examined the procedural aspects of the agreement's negotiation and the substantive content to ensure it met the statutory requirements. The Commission found that the agreement was the result of genuine good faith bargaining, as evidenced by the documentation and testimonies provided by both parties. Furthermore, the Commission concluded that the terms of the agreement were compliant with the minimum standards and did not result in any employee being worse off. The Commission approved the agreement, confirming its validity and enforceability under the Fair Work Act.

The final order of the Commission was the approval of the KO Form Pty Ltd and CFMEU Union Collective Agreement 2023–2027, which is now recognised as a lawful and binding agreement between the parties. This decision ensures that the terms of employment are regulated by this agreement rather than the applicable award or safety net provisions 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