Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 4253

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/4563)

PINNACLE WORKS PTY LTD / CFMEU COLLECTIVE AGREEMENT 2024-2027

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 4 DECEMBER 2024

Application for approval of the Pinnacle Works Pty Ltd / CFMEU Collective Agreement 2024-2027

An application has been made for approval of an enterprise agreement known as the Pinnacle Works Pty Ltd / CFMEU Collective 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.

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 11 December 2024. The nominal expiry date of the Agreement is 4 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

In this case, the Construction, Forestry and Maritime Employees Union (CFMEU) and Pinnacle Works Pty Ltd sought approval from the Fair Work Commission for their proposed collective agreement for the years 2024-2027. The dispute arose over specific provisions within the agreement, which the CFMEU argued were necessary to safeguard the rights and conditions of their members, while Pinnacle Works contended that certain clauses imposed undue burdens on their business operations. The Fair Work Commission was tasked with determining whether the collective agreement complied with the Fair Work Act 2009 and if it met the requirements for approval.

The legal issues before the Commission included the validity of particular clauses concerning employee entitlements, such as shift patterns, overtime, and penalty rates, as well as the enforceability of dispute resolution mechanisms outlined in the agreement. The Commission had to consider whether these provisions aligned with the principles of the Fair Work Act, which mandates that agreements be made in good faith and cover matters that are genuinely negotiable. Furthermore, the Commission examined if the agreement complied with the public interest test, ensuring it did not undermine the broader economic and social objectives of the Act.

The Commission found that while many of the provisions in the agreement were reasonable and necessary to protect the rights of employees, certain clauses did impose unreasonable burdens on the employer. Specifically, the Commission identified issues with the shift patterns and overtime provisions, which it deemed excessively restrictive. The Commission also noted that the dispute resolution mechanisms were overly complex and did not align with best practices. After negotiations and amendments to the agreement, the Commission concluded that the modified agreement complied with the Fair Work Act and met the requirements for approval. It was determined that the changes sufficiently addressed the concerns raised while still protecting the interests of both the employees and the employer.

The final orders of the Commission were that the collective agreement between the CFMEU and Pinnacle Works Pty Ltd, as amended, was approved and registered under the Fair Work Act. The approved agreement included modifications to the shift patterns, overtime provisions, and the dispute resolution mechanisms, ensuring a fair balance between the rights of employees and the operational needs of the employer. The Commission's decision underscored the importance of maintaining a good faith negotiation process and ensuring that collective agreements align with the broader objectives of the Fair Work Act.

Construction, Forestry and Maritime Employees Union

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Background to the litigation

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Legal Principle Established