Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 596

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/215)

RANGEDALE VIC PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS CONCRETE SAWING AND DRILLING ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 15 FEBRUARY 2024

Application for approval of the RANGEDALE VIC PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Sawing and Drilling Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the RANGEDALE VIC PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Sawing and Drilling 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.

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 22 December 2023 and the Agreement was made on 30 January 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.

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 22 February 2024. The nominal expiry date of the Agreement is 29 February 2024.

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) and Rangedale Vic PTY LTD (Rangedale) applied for approval of a subcontractor enterprise agreement. The agreement in question was the Subcontractors Concrete Sawing and Drilling Enterprise Agreement 2020-2023. The dispute centred on the fairness and appropriateness of the proposed terms and conditions outlined in the agreement for subcontractors involved in concrete sawing and drilling within the Victorian construction industry.

The Commission was tasked with determining whether the proposed agreement met the criteria for approval under the Fair Work Act 2009, specifically whether the agreement was "better off overall" for the employees covered by the agreement, and whether it included provisions that were fair and reasonable. This involved examining the proposed terms and conditions, such as pay rates, penalties for breaches, and the scope of the agreement, against the relevant industry benchmarks and legislative requirements.

The Commission found that the proposed agreement was fair and reasonable, and it met the "better off overall" test. The agreement provided for a fair and reasonable level of remuneration, and included provisions that were necessary to protect the health and safety of the employees. The Commission also found that the agreement contained appropriate penalties for breaches, and that it was sufficiently comprehensive to cover the intended scope of employment. As such, the Commission approved the agreement, which will now be applicable to the relevant subcontractors for the specified period.

The final orders of the Commission were that the Subcontractors Concrete Sawing and Drilling Enterprise Agreement 2020-2023 be approved and registered under the Fair Work Act 2009. The agreement was to take effect from the date of registration and would remain in force until the end of the specified period, unless terminated earlier in accordance with the terms of 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