Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3706

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3857)

NEWCASTLE-HUNTER 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 Newcastle-Hunter Constructions Pty Ltd / CFMEU Collective Agreement 2024-2027.

An application has been made for approval of an enterprise agreement known as the Newcastle-Hunter 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 26 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 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 matter before the Fair Work Commission involved an application by the Construction, Forestry and Maritime Employees Union (CFMEU) for approval of a collective agreement with Newcastle-Hunter Constructions Pty Ltd (NHC). The agreement sought to govern the terms and conditions of employment for workers under the construction industry within the specified period of 2024-2027. The dispute centred on whether the proposed terms complied with the Fair Work Act 2009 and other relevant legislative provisions.

The primary legal issues the Commission had to address were whether the collective agreement met the requirements of the Fair Work Act, including provisions regarding the protection of employee rights, the avoidance of unfair discrimination, and compliance with the principles of good faith bargaining. The Commission also needed to determine if the agreement provided adequate safeguards for employees and whether it met the standards for genuine collective bargaining.

The Commission reviewed the application and the proposed agreement in detail, considering the statutory requirements and the broader context of industrial relations. It examined the provisions to ensure they adhered to the principles of fairness and reasonableness, and that they did not unfairly disadvantage any party. After thorough deliberation, the Commission found that the agreement met the necessary legal standards and was consistent with the principles of good faith bargaining. Consequently, the Commission approved the collective agreement, confirming its compliance with the Fair Work Act and other relevant legislation.

The final orders of the Commission were that the Newcastle-Hunter Constructions Pty Ltd / CFMEU Collective Agreement 2024-2027 be approved and registered under the Fair Work Act. The agreement was to be binding on the parties and enforceable in accordance with the provisions of the Act. The decision provided clarity for both the union and the employer regarding the terms of employment and the legal framework governing their industrial relations.

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