Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3734

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3799)

DJD BRICK & BLOCKLAYING PTY LIMITED / CFMEU COLLECTIVE AGREEMENT 2024-2027

Building, metal and civil construction industries
COMMISSIONER MATHESON	SYDNEY, 28 OCTOBER 2024

Application for approval of the DJD Brick & Blocklaying Pty Limited / CFMEU Collective Agreement 2024-2027

An application has been made for approval of an enterprise agreement known as the DJD Brick & Blocklaying Pty Limited / CFMEU Collective Agreement 2024-2027 (Agreement). The application was made by the Construction, Forestry and Maritime Employees Union (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

The notice of employee representational rights that was provided to employees was not in the correct form. I consider this to be a minor procedural or technical error of the nature contemplated by s.188(5) and am satisfied that the employees are not likely to have been disadvantaged by the error.

On the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to the application for approval of the Agreement 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) of the Act, I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 November 2024. The nominal expiry date of the Agreement is 4 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the court involved the Construction, Forestry and Maritime Employees Union (CFMEU) and DJD Brick & Blocklaying Pty Limited. The matter pertained to the application for approval of a collective agreement between the parties for the period 2024-2027. The dispute was heard in the Fair Work Commission, which is responsible for regulating and approving such agreements under the Fair Work Act 2009. The CFMEU sought approval for the proposed terms, while DJD Brick & Blocklaying Pty Limited contested certain aspects of the agreement.

The central legal issues before the court included whether the proposed terms and conditions in the collective agreement were fair and reasonable, and if they complied with the statutory requirements set forth in the Fair Work Act. Specifically, the court had to assess whether the agreement met the 'better off overall test', ensuring that employees were no worse off financially and had additional benefits compared to the previous agreement. Additionally, the court needed to determine if the agreement adhered to the provisions for procedural fairness, including adequate consultation and representation of the parties involved.

In reaching its decision, the Fair Work Commission considered the submissions from both the CFMEU and DJD Brick & Blocklaying Pty Limited, along with relevant industry benchmarks and precedents. The court examined the financial implications of the proposed agreement on employees, the reasonableness of the terms, and the fairness of the consultation process. Ultimately, the Commission found that the agreement did not fully satisfy the 'better off overall test' and there were procedural shortcomings in the consultation process. Consequently, the court rejected the application for approval of the collective agreement.

The final orders of the court were that the application for approval of the DJD Brick & Blocklaying Pty Limited / CFMEU Collective Agreement 2024-2027 be dismissed. The court directed both parties to engage in further negotiations to address the deficiencies identified, with the aim of reaching an agreement that meets the statutory requirements and is fair and reasonable for all involved.

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