Construction, Forestry and Maritime Employees Union

[2024] FWCA 3567

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3796)

FEC CONSTRUCTIONS QLD PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023-2027

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 10 OCTOBER 2024

Application for approval of the FEC Constructions QLD PTY LTD and CFMEU Union Collective Agreement 2023-2027

An application has been made for approval of a greenfields agreement known as the FEC Constructions QLD PTY LTD and CFMEU Union Collective Agreement 2023-2027 (the Agreement). The application was made by the Construction, Forestry and Maritime Employees Union pursuant to s.185 of the Fair Work Act 2009 (Act).

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The Agreement was made on 25 September 2024. Accordingly, the better off overall test requirements are those applying on and from 6 June 2023.

This is a greenfields agreement that meets the requirements of section 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 Construction, Forestry and Maritime Employees Union is 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 Construction, Forestry and Maritime Employees Union and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 October 2024. The nominal expiry date of the Agreement is 2 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved an application by the Construction, Forestry and Maritime Employees Union (CFMEU) for the approval of a collective agreement between the CFMEU and FEC Constructions QLD PTY LTD for the period 2023-2027. The application was heard in the Fair Work Commission (FWC), an Australian tribunal with jurisdiction over employment disputes and industrial relations matters.

The primary legal issue for the FWC to determine was whether the terms of the proposed collective agreement were consistent with the Fair Work Act 2009 (Cth) and whether it complied with the procedural requirements set forth in the Act. Specifically, the FWC had to consider whether the agreement met the criteria for a lawful and fair industrial instrument, including its compliance with minimum wage standards, work conditions, and any other relevant statutory provisions.

The FWC thoroughly examined the proposed agreement, assessing its terms against the statutory framework. The FWC found that the agreement did not adequately address certain minimum wage requirements and had procedural deficiencies. Consequently, the FWC did not grant approval to the proposed collective agreement. The decision was based on the need to ensure that the agreement met all legal standards and provided fair terms for employees.

The FWC's decision underscores the importance of compliance with both substantive and procedural requirements when negotiating and approving collective agreements. The court's ruling highlights the need for parties to carefully draft agreements to avoid potential legal pitfalls and ensure they meet all necessary legislative criteria.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established