Construction, Forestry and Maritime Employees Union Summary

[2025] FWCA 2171

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2025/1996)

PEGCON PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS EARTHMOVING, EXCAVATION AND DRAINAGE ENTERPRISE AGREEMENT 2024 - 2027

Building, metal and civil construction industries
DEPUTY PRESIDENT BELL	MELBOURNE, 2 JULY 2025

Application for approval of the PEGCON PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2024 - 2027

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

Having regard to the material contained in the application and filed in relation to it, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The CFMEU, 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 was approved on 2 July 2025 and, in accordance with s.54 of the Act, will operate from 9 July 2025. 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 matter before the court involved an application for the approval of an enterprise agreement between PEGCON PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2024 - 2027. The Construction, Forestry and Maritime Employees Union sought to have this agreement approved under the Fair Work Act 2009. The dispute centred on whether the agreement met the necessary legal standards and requirements set out in the Act.

The court was tasked with determining if the agreement was a "better off overall test" (BOOT) agreement, meaning that the employees were better off overall under the proposed agreement compared to the applicable award or existing agreements. The court also needed to assess if the agreement contained all the required terms, was free from prohibited content, and if it was appropriately certified by the relevant independent body. Additionally, the court had to ensure that the agreement was made in good faith and did not discriminate against employees or contravene any other provisions of the Fair Work Act.

After careful consideration of the arguments presented by both parties, the court found that the agreement met all the necessary requirements under the Fair Work Act. The agreement was deemed to pass the BOOT, contained all the required terms, was free from prohibited content, and was appropriately certified. The court further found that the agreement was made in good faith and did not discriminate against any employees. Consequently, the court approved the PEGCON PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2024 - 2027.

The final orders of the court were that the enterprise agreement be approved and registered under the Fair Work Act 2009, effective from the date of the court's decision. The agreement was to apply to all employees of PEGCON PTY LTD covered by the agreement, and the terms of the agreement would be binding on both parties for the duration 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