Construction, Forestry and Maritime Employees Union

[2025] FWCA 1344

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2025/1079)

PREFAB1 PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) CIVIL & INFRASTRUCTURE ENTERPRISE AGREEMENT 2024-2027

Building, metal and civil construction industries
DEPUTY PRESIDENT BELL	MELBOURNE, 24 APRIL 2025

Application for approval of the PREFAB1 PTY LTD and the CFMEU (Victorian Construction and General Division) Civil & Infrastructure Enterprise Agreement 2024-2027.

An application has been made for approval of an enterprise agreement known as the PREFAB1 PTY LTD and the CFMEU (Victorian Construction and General Division) Civil & Infrastructure 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) of the Act, I note that the Agreement covers the organisation.

The Agreement was approved on 24 April 2025 and, in accordance with s.54 of the Act, will operate from 01 May 2025. The nominal expiry date of the Agreement is 02 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application for the approval of the PREFAB1 PTY LTD and the CFMEU (Victorian Construction and General Division) Civil & Infrastructure Enterprise Agreement 2024-2027. The Construction, Forestry and Maritime Employees Union sought approval of the agreement on behalf of the employees, while PREFAB1 PTY LTD, a construction company, was the employer party. The primary focus of the dispute was the terms and conditions outlined in the proposed enterprise agreement, including wages, hours of work, and other employment conditions.

The central legal issues the Commission had to address were whether the agreement met the requirements of the Fair Work Act 2009, particularly in terms of ensuring that the agreement facilitated the efficient operation of the business while also protecting the rights and interests of the employees. The Commission had to consider whether the agreement provided a fair and reasonable basis for resolving the terms and conditions of employment, and whether it complied with the "better-off-overall-test" under the Fair Work Act. This test required that the agreement be no less favourable to the employees than their existing terms and conditions or the applicable award.

In reaching its decision, the Commission examined the provisions of the agreement, the submissions from both parties, and the evidence presented. The Commission found that the proposed agreement met the statutory requirements and provided a fair and reasonable basis for resolving the terms and conditions of employment. It determined that the agreement was likely to result in employees being better off overall, taking into account not only the direct financial benefits but also other factors such as improved working conditions and job security. Consequently, the Commission approved the enterprise agreement, finding it to be in accordance with the provisions of the Fair Work Act.

The Fair Work Commission approved the PREFAB1 PTY LTD and the CFMEU (Victorian Construction and General Division) Civil & Infrastructure Enterprise Agreement 2024-2027, effective from 1 April 2024. The agreement, as approved, outlines the terms and conditions of employment for the employees covered by the agreement, including wages, hours of work, leave provisions, and other employment-related matters. This decision sets the framework for the employment relationship between PREFAB1 PTY LTD and its employees for the duration of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established