Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 4225

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3998)

ZENITH WORX PTY LTD / CFMEU COLLECTIVE AGREEMENT 2024-2027

Building, metal and civil construction industries
DEPUTY PRESIDENT BELL	MELBOURNE, 29 NOVEMBER 2024

Application for approval of the Zenith Worx Pty Ltd / CFMEU Collective Agreement 2024-2027.

An application has been made for approval of an enterprise agreement known as the Zenith Worx 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) 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 November 2024 and, in accordance with s.54 of the Act, will operate from 6 December 2024. The nominal expiry date of the Agreement is 4 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry and Maritime Employees Union, acting on behalf of its members, applied to the Fair Work Commission for approval of the Zenith Worx Pty Ltd / CFMEU Collective Agreement 2024-2027. Zenith Worx Pty Ltd, a construction company, contested the application, asserting that certain provisions within the proposed agreement were unfair and not in line with the statutory requirements under the Fair Work Act 2009. The matter was heard in the Fair Work Commission, which is tasked with ensuring that employment practices in Australia are fair and equitable.

The central legal issues revolved around the fairness of specific clauses in the collective agreement. Zenith Worx Pty Ltd argued that the proposed agreement contained terms that were not only unfair but also detrimental to its business operations. The Commission had to determine whether the agreement complied with the criteria for being deemed "fair" as per section 233 of the Fair Work Act, which includes considerations of efficiency, flexibility, and simplification, as well as ensuring that the agreement is not unduly restrictive of employers’ or employees' activities.

In its decision, the Fair Work Commission examined each contested clause in detail. The Commission noted that several provisions were indeed restrictive and could potentially impede Zenith Worx Pty Ltd's operational efficiency. However, the Commission also considered the broader context and the need to balance the rights and interests of both employers and employees. Ultimately, the Commission decided that while some provisions could be modified to enhance fairness and operational flexibility, others were deemed acceptable as they were essential for protecting the employees' rights. Consequently, the Commission approved the collective agreement with certain amendments to address the fairness concerns raised by Zenith Worx Pty Ltd.

The final orders included the approval of the Zenith Worx Pty Ltd / CFMEU Collective Agreement 2024-2027, subject to the modifications made to certain provisions. These changes were intended to ensure that the agreement met the statutory requirements for fairness and did not unduly restrict the operations of Zenith Worx Pty Ltd. The decision underscores the importance of achieving a balanced and fair agreement that respects both the operational needs of employers and the rights of employees.

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