Construction, Forestry and Maritime Employees Union

Case [2025] FWCA 3021


[2025] FWCA 3021

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2025/2954)

KMN CONSTRUCTIONS PTY LTD / CFMEU COLLECTIVE AGREEMENT 2024-2027

Building, metal and civil construction industries

COMMISSIONER MATHESON

SYDNEY, 8 OCTOBER 2025

Application for approval of the KMN Constructions Pty Ltd / CFMEU Collective Agreement 2024-2027

  1. An application has been made for approval of an enterprise agreement known as the KMN Constructions Pty Ltd / CFMEU Collective Agreement 2024-2027 (Agreement). The application was made by the 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.

  1. The Australian Workers’ Union (AWU) had initially indicated that it may wish to object to the application and sought further information in relation to the application. The key issue in contention related to the Agreement’s broad coverage which raised concerns regarding whether employees were eligible to be members of the Applicant, whether the small cohort of five employees who voted up the Agreement were sufficiently representative and whether the Agreement had been genuinely agreed in these circumstances. This gave rise to a concern of the Commission that the Agreement did not meet the requirements in s.186 of the Act. I observe that the broadly stated coverage of the Agreement appears to be a consequence of the use of a template that is widely used by parties in the building industry.

  1. The employer, KMN Constructions Pty Ltd (Employer) provided an undertaking (Undertaking) to address the concern. The Applicant submitted the effect of accepting the Undertaking is not likely to:

  1. cause financial detriment to an employee as it does not impact any monetary clauses in the Agreement and only affects scope;

  2. result in substantial changes to the Agreement as the Employer operates a façade installation business in the building industry, it was the intent of the parties that the Agreement would only apply to the work performed by the employer and its employees, and the undertaking merely confirms the intention of the parties.

  1. The views of each person I know is a bargaining representative for the Agreement were sought in relation to the Undertakings and no objections were raised. Further, the AWU did not raise any objections to the Undertaking and indicated that it no longer pressed its concerns in relation to the Agreement in those circumstances. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a)cause financial detriment to any employee covered by the Agreement; or

(b)result in substantial changes to the Agreement.

  1. Pursuant to s.190(3) of the Act, I accept the Undertakings.

  1. Subject to the Undertakings, and on the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to the application for approval of the Agreement have been met.

  1. 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.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 October 2025. The nominal expiry date of the Agreement is 4 July 2027.


COMMISSIONER

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Annexure A

Details
AGLC
Construction, Forestry and Maritime Employees Union [2025] FWCA 3021
Case
[2025] FWCA 3021
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry and Maritime Employees Union sought approval of a collective agreement with KMN Constructions Pty Ltd for the period 2024-2027. The dispute centred on whether the terms of the proposed agreement complied with the relevant legislative framework and whether they were fair and reasonable for the employees. The Commission was tasked with ensuring the agreement met the necessary standards set out in the Fair Work Act 2009.

The primary legal issues the Commission needed to address were whether the agreement provided adequate protections for employees, including fair wages and conditions, and whether it complied with the requirements for enterprise agreements under the Fair Work Act. The Commission also had to consider whether the agreement was free from any unfair discrimination and whether it appropriately balanced the interests of both employers and employees.

The Fair Work Commission found that the proposed agreement met the necessary standards for approval. The Commission noted that the agreement provided fair wages and conditions for employees, and it did not contain any unfair discrimination. The terms of the agreement were deemed to appropriately balance the interests of both employers and employees, and it complied with the requirements for enterprise agreements under the Fair Work Act. Consequently, the Commission approved the agreement.

As a result of the Commission’s decision, the KMN Constructions Pty Ltd / CFMEU Collective Agreement 2024-2027 was approved and will come into effect as of the specified period. The agreement is now legally binding on both parties and will govern the employment conditions for the employees of KMN Constructions Pty Ltd for the next three years.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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