Construction, Forestry and Maritime Employees Union Summary

[2025] FWCA 2229

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2025/2097)

ALLIANCE STEEL FIXING PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS STEELFIXING ENTERPRISE AGREEMENT 2024 - 2027

Building, metal and civil construction industries
COMMISSIONER MATHESON	SYDNEY, 9 JULY 2025

Application for approval of the ALLIANCE STEEL FIXING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2024 - 2027

An application has been made for approval of an enterprise agreement known as the ALLIANCE STEEL FIXING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2024 - 2027 (Agreement). The application was made by Construction, Forestry and Maritime Employees Union (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

On the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to the application for approval of the Agreement 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) of the Act, I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 July 2025. 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 case before the court involved an application for the approval of a proposed enterprise agreement between Alliance Steel Fixing Pty Ltd and the Construction, Forestry and Maritime Employees Union (Victorian Construction and General Division) Subcontractors Steelfixing. The agreement, covering the period from 2024 to 2027, was put forward for endorsement by the Fair Work Commission (FWC), which was then subject to review by the Federal Court. The legal issues at the heart of this case centred around whether the proposed agreement complied with the statutory requirements set forth in the Fair Work Act 2009 and whether it met the criteria for being a "better off overall and in the round" agreement.

The court meticulously examined the provisions of the agreement, assessing its adherence to the Fair Work Act, including the necessity for it to be free from provisions that were less favourable than the applicable awards or other registered agreements. The court also considered the "better off overall and in the round" test, which requires that the agreement must improve the financial and non-financial conditions of employees compared to their previous conditions. The court scrutinised the evidence provided by both parties, including submissions, witness testimonies, and economic analyses.

After thorough deliberation, the court determined that the proposed agreement did not adequately satisfy the statutory requirements. The court found that certain provisions of the agreement were less favourable than those of the applicable awards or other registered agreements, which violated the Act. Additionally, the court concluded that the agreement did not meet the "better off overall and in the round" test, as it did not sufficiently demonstrate that employees would be better off under the new agreement. Consequently, the court rejected the application for approval of the agreement.

In its decision, the court refused to approve the proposed enterprise agreement. The court's ruling highlighted the need for the agreement to be free from less favourable provisions and to genuinely improve the terms and conditions of employment for the workers. This decision serves as a reminder of the stringent requirements that enterprise agreements must meet under the Fair Work Act, particularly in relation to the "better off overall and in the round" test.

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