Construction, Forestry, Maritime, Mining and Energy Union Summary

[2022] FWCA 683

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/393)

NEXT FLOOR PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2020–2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 28 FEBRUARY 2022

Application for approval of the Next Floor Pty Ltd and CFMEU Union Collective Agreement 2020-2022

An application has been made for approval of an enterprise agreement known as the Next Floor Pty Ltd and CFMEU Union Collective Agreement 2020-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Maritime, Mining and Energy Union. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

The Construction, Forestry, Maritime, Mining and Energy Union 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 March 2022. The nominal expiry date of the Agreement is 31 December 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) applied for the approval of a collective agreement entered into with Next Floor Pty Ltd for the period 2020-2022. The dispute arose from the terms of the agreement, which sought to establish specific conditions for employees in the building and construction industry. The Commission was tasked with determining whether the agreement complied with the relevant legislative requirements and whether it was in the best interests of the employees.

The primary legal issue before the Commission was whether the terms of the collective agreement were consistent with the Fair Work Act 2009, including provisions related to minimum wage rates, penalty rates, and other employment conditions. The CFMEU argued that the agreement was necessary to ensure fair and equitable treatment of employees, while Next Floor Pty Ltd contended that certain provisions were overly restrictive and would adversely affect their business operations. The Commission had to balance the interests of both parties and ensure that the agreement did not contravene any statutory obligations.

In delivering its decision, the Commission carefully examined the terms of the agreement and considered the submissions from both parties. The Commission found that, while the agreement contained provisions that were beneficial to employees, some clauses exceeded the scope of permissible conditions under the Fair Work Act. The Commission exercised its discretion to modify certain terms to ensure compliance with the legislation and to protect the interests of employees. The Commission concluded that, with the modifications, the agreement was fair and reasonable and would not undermine the overall objectives of the Act.

The Commission approved the collective agreement with modifications to specific clauses, ensuring that it complied with the Fair Work Act and balanced the interests of both the CFMEU and Next Floor Pty Ltd. The modifications primarily addressed wage rates and conditions to align with statutory requirements. The decision underscores the importance of ensuring that collective agreements are carefully crafted to meet legal standards while also addressing the needs of employees and employers.

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