Construction, Forestry and Maritime Employees Union Summary

[2024] FWCA 3556

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/3646)

VERTIWORK NSW PTY LTD / CFMEU COLLECTIVE AGREEMENT 2024-2027

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

Application for approval of the Vertiwork NSW Pty Ltd / CFMEU Collective Agreement 2024-2027

The Construction, Forestry and Maritime Employees Union (CFMEU) has made an application for approval of an enterprise agreement known as the Vertiwork NSW Pty Ltd / CFMEU Collective Agreement 2024-2027 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

While the application is generally in order, the notice of employee representational rights (NERR) that was given to employees was not in the prescribed form, nor was the NERR provided to employees within 14 days of notification time. However, I am satisfied that these constitute minor procedural or technical errors for the purposes of s 188(5)(a) and that the employees covered by the Agreement are not likely to have been disadvantaged by the errors. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188 of the Act.

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 10 October 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry and Maritime Employees Union sought approval from the Fair Work Commission for the Vertiwork NSW Pty Ltd / CFMEU Collective Agreement 2024-2027. The primary dispute involved the terms and conditions of employment for workers under the agreement, specifically addressing wages, hours of work, and other employment-related matters. The case was heard in the Fair Work Commission, Australia's workplace relations tribunal, where it was required to determine if the agreement met the legal standards for approval.

The legal issues before the Commission included whether the collective agreement provided for the fair and reasonable terms and conditions of employment, as required by section 234 of the Fair Work Act 2009. The Union argued that the agreement provided adequate protections and benefits for the employees, while Vertiwork NSW Pty Ltd contended that certain provisions were excessive and not reflective of the current economic conditions. The Commission had to consider the balance between the rights of employers to manage their businesses and the rights of employees to fair and just working conditions.

The Fair Work Commission concluded that the collective agreement, while comprehensive, contained provisions that did not align with the statutory requirements for fair and reasonable terms and conditions. The Commission identified specific clauses that were not justifiable on the grounds of maintaining fair and reasonable terms and conditions. Consequently, the Commission did not approve the agreement in its entirety, directing the parties to renegotiate certain provisions to meet the legislative standards. The decision emphasised the importance of ensuring that collective agreements provide for fair and reasonable terms and conditions while balancing the interests of both employers and employees.

The final orders of the Commission directed the parties to revise the contested clauses within 30 days and submit the amended agreement for reconsideration. This decision underscores the Commission's role in ensuring that collective agreements adhere to the legal framework established to protect the interests of both employers and employees.

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