Construction, Forestry and Maritime Employees Union

[2024] FWCA 491

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/124)

PEAK PRECAST PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023–2027

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 5 FEBRUARY 2024

Application for approval of the Peak Precast Pty Ltd and CFMEU Union Collective Agreement 2023–2027

An application has been made for approval of an enterprise agreement known as the Peak Precast Pty Ltd and CFMEU Union Collective Agreement 2023–2027 (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 4 December 2023 and the Agreement was made on 15 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.

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 12 February 2024. The nominal expiry date of the Agreement is 2 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry and Maritime Employees Union (CFMEU) filed an application for the approval of the Peak Precast Pty Ltd and CFMEU Union Collective Agreement 2023–2027 with the Fair Work Commission. The primary parties involved in the dispute were the CFMEU and Peak Precast Pty Ltd, a company operating within the construction industry. The nature of the dispute centred around the terms and conditions of employment set out in the proposed collective agreement, which the CFMEU sought to have approved as a registered agreement under the Fair Work Act 2009. The application was heard by the Fair Work Commission, which has jurisdiction to approve, register, and enforce such agreements.

The central legal issues the Commission needed to address were whether the proposed agreement was genuinely a collective agreement and whether it met the requirements for registration under the Fair Work Act. Specifically, the Commission had to determine if the agreement was negotiated in good faith, covered a range of employees, and did not contravene any provisions of the Act or contain any unfair terms. Additionally, the Commission examined the process by which the agreement was negotiated and if it adhered to the procedural requirements set out in the legislation.

In making its decision, the Commission considered various aspects of the proposed agreement. It assessed the negotiation process, the terms of the agreement, and the impact on the employees covered by it. The Commission found that the agreement was genuinely a collective agreement, negotiated in good faith, and met all the statutory requirements for registration. The terms of the agreement were deemed fair and did not contravene any provisions of the Fair Work Act. Consequently, the Commission approved the Peak Precast Pty Ltd and CFMEU Union Collective Agreement 2023–2027, thereby registering it as a protected action agreement.

As a result of the Commission's approval, the agreement became a legally binding instrument between Peak Precast Pty Ltd and the employees covered by it. The decision ensured that the terms of the agreement would be enforced, providing a stable framework for industrial relations within the company for the duration of the agreement. The Commission's approval was final and binding, and no further legal challenges could be brought in relation to the agreement under the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established