Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3688

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3963)

HIGHRISE BUILDING SERVICES PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS RIGGER/STEEL ERECTOR ENTERPRISE AGREEMENT 2024 - 2027

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

Application for approval of the Highrise Building Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector 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 Highrise Building Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector 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.

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 24 October 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved an application for the approval of a proposed enterprise agreement between Highrise Building Services Pty Ltd and the Construction, Forestry and Maritime Employees Union (Victorian Construction and General Division) for subcontractors riggers and steel erectors. The application was heard in the Fair Work Commission, with the aim to determine whether the agreement met the legal requirements for approval under the Fair Work Act 2009. The dispute centred on several contentious provisions within the agreement, including aspects of pay rates, working conditions, and dispute resolution mechanisms.

The primary legal issues the court needed to address were whether the agreement provided for the prescribed pay and conditions, including minimum wages and penalty rates, and whether it complied with the procedural requirements for the making of an enterprise agreement. Furthermore, the court had to consider whether the agreement was made in good faith and whether it complied with the requirements for the approval of an enterprise agreement under the Fair Work Act.

The court examined the provisions of the proposed agreement and found that, while most of the agreement met the statutory requirements, certain provisions regarding pay rates and conditions did not comply with the prescribed standards. The court highlighted that while the parties had attempted to negotiate a comprehensive agreement, the failure to adhere strictly to the mandated minimum standards necessitated the refusal of approval. The court concluded that, despite the good faith efforts of the parties, the agreement could not be approved in its current form due to non-compliance with the legislative requirements.

The Fair Work Commission decided to reject the application for approval of the Highrise Building Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2024 - 2027. The Commission ordered that the agreement be returned to the parties for amendment to ensure compliance with the Fair Work Act. The decision underscored the importance of strict adherence to statutory provisions in enterprise agreements and the need for parties to carefully consider all legislative requirements when negotiating such agreements.

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