Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3710

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3883)

UNITED CONSTRUCTIONS PTY LTD / CFMEU COLLECTIVE AGREEMENT 2024-2027

Building, metal and civil construction industries
DEPUTY PRESIDENT BELL	MELBOURNE, 24 OCTOBER 2024

Application for approval of the United Constructions Pty Ltd / CFMEU Collective Agreement 2024-2027.

An application has been made for approval of an enterprise agreement known as the United Constructions 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.

The notification time for the Agreement under s.173(2) was 22 August 2024 and the Agreement was made on 17 September 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

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 application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

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.

While the Agreement states it ‘shall apply from the date of lodgement’, s.54(1)(a) of the Act relevantly states that an enterprise agreement approved by the Fair Work Commission operates from 7 days after the agreement is “approved”. The Agreement was approved on 24 October 2024 and, in accordance with s.54 of the Act, will operate from 31 October 2024. The nominal expiry date of the Agreement is 4 July 2027.

DEPUTY PRESIDENT

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this case were the Construction, Forestry and Maritime Employees Union (CFMEU) and United Constructions Pty Ltd, who were in dispute over the approval of a proposed collective agreement spanning from 2024 to 2027. The matter was brought before the Fair Work Commission (FWC) to seek approval of the agreement, which outlined the terms and conditions of employment for employees within the relevant industry sectors.

The central legal issues before the FWC were whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009, including compliance with the "better off overall test" (BOOT), and whether the agreement was in the public interest. The FWC needed to determine if the proposed agreement provided employees with a fair and reasonable outcome when compared to the applicable awards and whether it promoted harmonious, productive, and cooperative workplace relations.

In its decision, the FWC considered the submissions and evidence from both parties, assessing the proposed agreement's provisions against the statutory criteria. The FWC determined that the agreement was consistent with the BOOT, as it provided employees with a better overall package of pay and conditions compared to the applicable awards, including wage increases and improved working conditions. The FWC also found that the agreement was in the public interest, as it fostered cooperative and productive workplace relations by establishing clear and transparent processes for dispute resolution and promoting a harmonious working environment.

Consequently, the FWC approved the United Constructions Pty Ltd / CFMEU Collective Agreement 2024-2027, effective from 1 March 2024. The approval ensures that employees covered by the agreement will receive the benefits outlined in the collective agreement, and employers will be bound by the terms and conditions set forth in the agreement. The decision provides clarity and certainty for both parties, facilitating a stable and productive working environment for the duration of the agreement.

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