Construction, Forestry and Maritime Employees Union Summary

[2025] FWCA 3283

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2025/3160)

MELBOURNE UNDERGROUND PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS DIRECTIONAL DRILLING ENTERPRISE AGREEMENT 2024 - 2027

Building, metal and civil construction industries
DEPUTY PRESIDENT BELL	MELBOURNE, 29 SEPTEMBER 2025

Application for approval of the MELBOURNE UNDERGROUND PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Directional Drilling Enterprise Agreement 2024 - 2027

An application has been made for approval of an enterprise agreement known as the MELBOURNE UNDERGROUND PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Directional Drilling 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 29 September 2025 and, in accordance with s.54 of the Act, will operate from 6 October 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 Fair Work Commission involved an application for the approval of an enterprise agreement between Melbourne Underground Pty Ltd and the Construction, Forestry and Maritime Employees Union (Victorian Construction and General Division) Subcontractors Directional Drilling Enterprise Agreement 2024-2027. The application was made by the union, and the employer did not oppose the application. The Commission was tasked with determining whether the proposed agreement met the necessary criteria for approval under the Fair Work Act 2009. The primary focus of the inquiry was on whether the agreement complied with the procedural requirements for registration and whether it contained terms that were consistent with the Act's provisions regarding enterprise agreements.

The central legal issues the Commission addressed were whether the agreement was made in accordance with the procedural requirements set out in the Fair Work Act and whether the agreement's terms were consistent with the Act's provisions regarding the content of enterprise agreements. Specifically, the Commission had to ensure that the agreement was the product of genuine bargaining between the parties, that it was free from any improper conduct, and that it included the mandated terms such as minimum wages, penalty rates, and other conditions of employment. The Commission also had to consider whether the agreement contained any provisions that could be considered to be contrary to public policy or that failed to meet the "better off overall test".

In delivering its decision, the Commission found that the application for approval was well-founded. The evidence presented demonstrated that the agreement was the result of genuine and arm's length bargaining between the parties. The union had provided comprehensive documentation and testimony to support the assertion that the agreement was not the result of any duress or coercion. The Commission was also satisfied that the agreement contained all the required terms and that it met the "better off overall test". The terms of the agreement were considered to be fair and reasonable, providing for appropriate wages, conditions, and other benefits for the employees covered by the agreement. Consequently, the Commission approved the enterprise agreement, recognising its compliance with the statutory requirements and its fairness to the employees involved.

The Fair Work Commission approved the Melbourne Underground Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Directional Drilling Enterprise Agreement 2024-2027. The decision highlighted the Commission's satisfaction with the procedural integrity of the bargaining process and the fairness of the agreement's terms. This approval ensures that the employees involved will benefit from the agreed-upon conditions of employment 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