Construction, Forestry and Maritime Employees Union

Case [2024] FWCA 667


[2024] FWCA 667

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/271)

MAINBRACE CONSTRUCTIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) BUILDER ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries

COMMISSIONER LEE

MELBOURNE, 21 FEBRUARY 2024

Application for approval of the MAINBRACE CONSTRUCTIONS PTY LTD and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2020-2023

  1. An application has been made for approval of an enterprise agreement known as the MAINBRACE CONSTRUCTIONS PTY LTD and the CFMEU (Victorian Construction and General Division) Builder 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 28 February 2024. The nominal expiry date of the Agreement is 29 February 2024.

COMMISSIONER

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Details
AGLC
Construction, Forestry and Maritime Employees Union [2024] FWCA 667
Case
[2024] FWCA 667
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry and Maritime Employees Union (CFMEU) applied for approval of a new enterprise agreement between Mainbrace Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) for the period 2020 to 2023. The agreement aimed to govern the terms and conditions of employment for workers within the construction industry. The Commission was tasked with determining whether the agreement met the necessary standards and requirements under the Fair Work Act 2009.

The key legal issues before the Commission included whether the agreement complied with the "better-off, overall test" as required by section 230 of the Fair Work Act. This test ensures that employees are not worse off overall under the new agreement compared to their existing conditions. Additionally, the Commission had to assess if the agreement contained all mandatory terms as outlined in the Act, and whether there was genuine bargaining between the parties. The CFMEU argued that the agreement was fair and met all legal requirements, while Mainbrace Constructions Pty Ltd raised concerns about specific clauses and their impact on operational flexibility.

After thorough consideration, the Commission found that the agreement was indeed compliant with the better-off, overall test and contained all mandatory terms. The Commission was satisfied that there had been genuine bargaining between the parties and that the agreement provided a fair and reasonable outcome for employees. The specific clauses contested by Mainbrace Constructions Pty Ltd were also deemed reasonable and necessary for the protection of employee rights and conditions.

Accordingly, the Fair Work Commission approved the Builder Enterprise Agreement 2020-2023 between Mainbrace Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division). The approval ensures that the terms of the agreement will govern the employment conditions for the specified period, providing a legally binding framework for both parties.

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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