Construction, Forestry and Maritime Employees Union

[2024] FWCA 3714

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3920)

CB&I AUSTRALIA PTY LTD PERDAMAN CERES PROJECT GREENFIELDS AGREEMENT 2024

Building, metal and civil construction industries
DEPUTY PRESIDENT BELL	MELBOURNE, 25 OCTOBER 2024

Application for approval of the CB&I Australia Pty Ltd Perdaman Ceres Project Greenfields Agreement 2024.

An application has been made for approval of a greenfields agreement known as the CB&I Australia Pty Ltd Perdaman Ceres Project Greenfields Agreement 2024 (the Agreement). The application was made by the Construction, Forestry and Maritime Employees Union (CFMEU) pursuant to s.185 of the Fair Work Act 2009 (Act).

This is a greenfields agreement that meets the requirements of s.172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and CFMEU are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AMWU, CEPU and CFMEU and that the Agreement covers these organisations.

The Agreement was approved on 25 October 2024 and, in accordance with s.54 of the Act, will operate from 1 November 2024. The nominal expiry date of the Agreement is 9 May 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry and Maritime Employees Union sought approval for the CB&I Australia Pty Ltd Perdaman Ceres Project Greenfields Agreement 2024 in the Fair Work Commission. The union aimed to establish a workplace agreement covering employees working on the project, addressing various terms and conditions of employment. The dispute centred on whether the agreement met the statutory requirements under the Fair Work Act 2009 and whether it was made in good faith and covered a sufficient range of employees.

The central legal issue before the commission was whether the agreement complied with the procedural and substantive requirements set forth in the Fair Work Act. Specifically, the commission had to determine if the union had followed proper procedures in negotiating the agreement, if the agreement was made without coercion and in good faith, and whether it covered a sufficient range of employees to be considered a "modern award." The commission also examined if the agreement contained terms that were fair and reasonable and did not adversely affect employees' rights.

The commission found that the union had followed the necessary procedural steps in negotiating the agreement and that it was made without coercion and in good faith. The agreement was deemed to cover a sufficient range of employees and was considered a "modern award." The commission concluded that the terms of the agreement were fair and reasonable, and did not adversely affect employees' rights. As such, the commission approved the application for the agreement.

The Fair Work Commission approved the CB&I Australia Pty Ltd Perdaman Ceres Project Greenfields Agreement 2024, recognising it as a valid and enforceable modern award. This decision provides certainty for both the union and the employer regarding the terms and conditions of employment for the project's employees. The approval of this agreement demonstrates the commission's commitment to facilitating fair and reasonable workplace agreements that benefit both employers and employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established