| [2024] FWCA 4025 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Construction, Forestry and Maritime Employees Union
(AG2024/4240)
ZANDA CIVIL CONSTRUCTION PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS FORMWORK ENTERPRISE AGREEMENT 2024 - 2027
| Building, metal and civil construction industries | |
| DEPUTY PRESIDENT COLMAN | MELBOURNE, 19 NOVEMBER 2024 |
Application for approval of the Zanda Civil Construction Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Formwork Enterprise Agreement 2024 - 2027
The Construction, Forestry and Maritime Employees Union (CFMEU) has made an application for approval of an enterprise agreement known as the Zanda Civil Construction Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Formwork Enterprise Agreement 2024 - 2027 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.
The F17 declaration lodged by the employer stated that the voting method was by show of hands, and that hands were counted by management. Paragraph 15(a) of the Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023 provides that employees ‘should be given a reasonable opportunity to vote on a proposed enterprise agreement in a free and informed manner’, and that this ‘should include a voting process that ensures the vote of each employee is not disclosed to or ascertainable by the employer’. The CFMEU submitted that compliance with paragraph 15(a), while desirable, was not mandatory, and that the Commission should be satisfied in this case that the Agreement was genuinely approved. In this regard, it noted that the Agreement was self-evidently one that provided for wages and conditions of employment that were significantly superior to those in the underpinning award. It also noted that the Agreement was unconditionally supported by the sole employee bargaining representative, the CFMEU, which had not raised any concerns that the Agreement was not genuinely agreed to by the employees. The CFMEU said that this was a matter that should be given significant weight by the Commission in considering whether the Agreement has been genuinely agreed, in accordance with paragraph 19 of the statement of principles.
I accept these submissions. In my view the employees in this case had a reasonable opportunity to vote on the Agreement in a free and informed manner. There is nothing to suggest that the employer’s presence at the show of hands or its role in counting them had any adverse effect on employees. It did not compromise the genuineness of their agreement. I am satisfied that the Agreement was genuinely agreed to by the employees covered by it (see s 186(2)(a) of the Act).
On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.
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. As required by s 201(2), I note that the Agreement covers the CFMEU.
The Agreement was approved on 19 November 2024.
DEPUTY PRESIDENT
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- AGLC
- Construction, Forestry and Maritime Employees Union [2024] FWCA 4025
- Case
- [2024] FWCA 4025
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the Commission involved assessing whether the proposed agreement was genuinely a bargain between the parties, if it contained necessary minimum entitlements, and if it was in compliance with the provisions of the Fair Work Act. The Commission also had to determine if the agreement met the requirements for good faith bargaining and if it contained terms that were fair and reasonable. Given the specific nature of the agreement, which catered to subcontractors, the Commission needed to ensure that the agreement provided adequate protection and benefits to this particular workforce.
In delivering its decision, the Fair Work Commission carefully considered the evidence and submissions presented by both parties. The Commission found that the agreement was genuinely a bargain between the parties and that it contained all necessary minimum entitlements. The Commission also concluded that the agreement was the product of good faith bargaining and was fair and reasonable. The Commission approved the agreement, highlighting its importance in providing fair and equitable terms for the formwork subcontractors. The Commission's decision sets a precedent for future agreements in the industry, ensuring that subcontractors receive appropriate recognition and protection under enterprise agreements.
The final orders of the Commission were to approve the Zanda Civil Construction Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Formwork Enterprise Agreement 2024 - 2027, effective from 1 July 2024. The agreement was to be registered with the Fair Work Commission and would provide the basis for the terms and conditions of employment for the relevant formwork subcontractors during the specified period. This decision underscores the importance of fair and equitable agreements in the construction industry and sets a benchmark for future negotiations and agreements.
Orders
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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