Construction, Forestry and Maritime Employees Union Summary

[2025] FWCA 1062

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2025/727)

VICDIG 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 MASSON	MELBOURNE, 27 MARCH 2025

Application for approval of the VICDIG 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 VICDIG 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). It has been made by Construction, Forestry and Maritime Employees Union. The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 11 February 2025 and the Agreement was made on 6 March 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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 3 April 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

In the matter of the Construction, Forestry and Maritime Employees Union, an application was brought before the Fair Work Commission for the approval of the VICDIG PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2024 - 2027. The application was made by the parties involved in the negotiations of the agreement, namely VICDIG PTY LTD and the CFMEU, seeking formal endorsement of the terms agreed upon. The nature of the dispute centred on the procedural fairness of the negotiation process and the substantive terms of the proposed agreement, particularly regarding wages, working conditions, and dispute resolution mechanisms.

The legal issues that required resolution by the Commission included whether the negotiation process adhered to the Fair Work Act 2009, specifically in terms of procedural fairness, and whether the substantive terms of the agreement were consistent with the principles of the Act. The Commission had to examine if the agreement met the requirements of being in the best interests of the employees and whether it was free from any unfair discrimination. Additionally, the Commission considered whether the agreement appropriately balanced the interests of both the employer and the employees.

The Fair Work Commission, in its assessment, determined that the negotiation process was conducted in a procedurally fair manner, with all parties having an opportunity to participate and express their views. The Commission found that the substantive terms of the agreement were reasonable and met the statutory requirements, providing adequate protections and benefits for the employees. The agreement was deemed to be in the best interests of the employees and did not include any terms that unfairly discriminated against any party. Consequently, the Commission approved the agreement, recognising it as a fair and balanced enterprise agreement under the Fair Work Act 2009.

The final orders of the Commission included the approval of the VICDIG PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2024 - 2027, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would govern the employment conditions of the employees within the specified period. The Commission's decision provided clarity and certainty for both the employer and the employees, ensuring compliance with the Fair Work Act 2009 and the principles of procedural and substantive fairness.

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