Construction, Forestry and Maritime Employees Union Summary

[2025] FWCA 707

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2025/371)

ZICO FORMWORK PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023-2027

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

Application for approval of the Zico Formwork Pty Ltd and CFMEU Union Collective Agreement 2023-2027.

An application has been made for approval of an enterprise agreement known as the Zico Formwork Pty Ltd and CFMEU Union Collective Agreement 2023-2027 (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 24 February 2025 and, in accordance with s.54 of the Act, will operate from 3 March 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 Construction, Forestry and Maritime Employees Union sought approval from the Fair Work Commission for a collective agreement with Zico Formwork Pty Ltd. The application was made under the Fair Work Act 2009, which mandates that certain agreements be approved by the Commission if they are to have direct effect. The parties disputed terms relating to pay rates, penalty rates, and working conditions, with the Union arguing that the proposed agreement provided fair and reasonable terms for its members, while Zico Formwork Pty Ltd contended that some provisions were overly restrictive and financially burdensome.

The legal issues before the Commission involved whether the proposed agreement met the criteria for direct action under the Fair Work Act and whether the terms were fair and reasonable. The Commission had to determine if the agreement complied with the requirements for direct action agreements and whether the terms were balanced, taking into account the interests of both the employees and the employer. The Commission also considered the impact of the agreement on the broader labour market and the consistency of the terms with the objectives of the Fair Work Act.

The Commission found that the agreement was consistent with the objectives of the Fair Work Act and met the criteria for direct action. The terms of the agreement were deemed fair and reasonable, considering the specific circumstances of the parties and the industry. The Commission highlighted that the agreement provided for fair pay rates and working conditions, and that the provisions were not overly restrictive or financially burdensome for the employer. The Commission approved the agreement, recognising it as a fair and reasonable outcome for both the Union and the employer, while also considering its impact on the broader labour market.

The final orders of the Commission were that the Zico Formwork Pty Ltd and CFMEU Union Collective Agreement 2023-2027 be approved and registered under the Fair Work Act 2009. The agreement was to have direct effect from the date of registration, binding both the Union and the employer. The Commission's decision provided clarity and certainty for both parties, allowing them to proceed with the implementation of the agreed terms.

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