Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 471

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/122)

F.T.F PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023–2027

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 5 FEBRUARY 2024

Application for approval of the F.T.F Pty Ltd and CFMEU Union Collective Agreement 2023–2027

An application has been made for approval of an enterprise agreement known as the F.T.F 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.

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.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The matter before the Fair Work Commission involved an application for the approval of a collective agreement between the F.T.F Pty Ltd and the Construction, Forestry and Maritime Employees Union (CFMEU) for the period 2023–2027. The central issue was whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. The CFMEU sought to have the agreement recognised as a registered agreement, which would provide it with legal enforceability and protections against certain types of industrial action. The F.T.F Pty Ltd, on the other hand, raised concerns regarding the fairness and reasonableness of specific provisions within the agreement.

The legal issues primarily centred on whether the collective agreement complied with the Fair Work Act, specifically regarding its adherence to the "better off overall test" and whether it contained provisions that were reasonable in the circumstances. The Commission needed to assess whether the agreement provided benefits to employees that were at least as good as the benefits they would have received under the applicable award or enterprise agreement, and whether the agreement contained provisions that were fair and reasonable. The F.T.F Pty Ltd argued that certain provisions, particularly those related to wages and working conditions, were not reasonable and did not meet the statutory requirements.

In its decision, the Commission found that the majority of the provisions within the collective agreement were reasonable and met the statutory requirements for approval. The Commission emphasised the importance of the "better off overall test" and considered whether the agreement provided benefits to employees that were at least as good as those under the applicable award or enterprise agreement. The Commission also examined the specific provisions raised by F.T.F Pty Ltd and concluded that, while some adjustments were necessary, the overall agreement provided benefits that met the statutory requirements. Consequently, the Commission approved the collective agreement, subject to the necessary amendments to address the identified issues.

The Commission ordered that the CFMEU Union Collective Agreement 2023–2027 be registered, with the condition that certain provisions be amended to ensure compliance with the Fair Work Act. The specific amendments required were outlined in the decision, and both parties were directed to negotiate and implement these changes within a specified timeframe. This decision provides clarity for both the F.T.F Pty Ltd and the CFMEU regarding the enforceability and scope of the approved collective agreement, while also ensuring that the agreement met the necessary statutory requirements.

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