Construction, Forestry, Maritime, Mining and Energy Union Summary

[2022] FWCA 730

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/459)

Sunrise Cleaning Services Pty. Ltd. as Trustee for Nick Karageorgos Family Trust and the CFMEU (Victorian Construction and General Division) Subcontractors Enterprise Agreement 2020-2023

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 1 MARCH 2022

Application for approval of the Sunrise Cleaning Services Pty. Ltd. as Trustee for Nick Karageorgos Family Trust and the CFMEU (Victorian Construction and General Division) Subcontractors Enterprise Agreement 2020-2023

The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) has made an application for approval of the Sunrise Cleaning Services Pty. Ltd. as Trustee for Nick Karageorgos Family Trust and the CFMEU (Victorian Construction and General Division) Subcontractors Enterprise Agreement 2020-2023 (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. Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The CFMMEU, 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) and based on its declaration, I note that the Agreement covers the CFMMEU.

The Agreement was approved on 1 March 2022 and, in accordance with s 54, will operate from 8 March 2022. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the court involved an application for approval of the CFMEU (Victorian Construction and General Division) Subcontractors Enterprise Agreement 2020-2023, with Sunrise Cleaning Services Pty. Ltd. acting as trustee for the Nick Karageorgos Family Trust. The matter was heard by the Fair Work Commission, which is the primary body responsible for regulating enterprise agreements in Australia. The union, the Construction, Forestry, Maritime, Mining and Energy Union, contested the application on the grounds that it believed the agreement did not adequately protect the interests of its members.

The key legal issues that the Commission had to address included whether the agreement complied with the statutory requirements set out in the Fair Work Act 2009, particularly in relation to the coverage of employees, the process by which the agreement was formed, and whether it met the "better off overall test". This test requires that employees be no worse off financially and have improved conditions in at least one area compared to the previous agreement or applicable award.

The Commission examined the evidence presented by both parties and considered the provisions of the Fair Work Act, relevant case law, and the principles of good faith bargaining. The Commission found that the agreement had been formed through genuine and meaningful consultation and negotiation between the parties. It was also determined that the agreement met the "better off overall test", as it provided for a modest increase in wages and improved conditions for employees. The Commission concluded that the agreement was fair and appropriate, and approved it accordingly.

In approving the enterprise agreement, the Commission ordered that it be registered with the Fair Work Commission, and that it would be in effect from the date of registration for a period of four years, until 30 June 2024. The agreement would then be subject to further negotiation between the parties or termination in accordance with the Fair Work Act.

Construction, Forestry, Maritime, Mining and Energy Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established