Construction, Forestry, Maritime, Mining and Energy Union Summary

[2022] FWCA 667

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/346)

GVK QLD Reo Pty Ltd and CFMEU Minor Civil Construction Union Collective Agreement 2021 - 2025

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 24 FEBRUARY 2022

Application for approval of the GVK QLD Reo Pty Ltd and CFMEU Minor Civil Construction Union Collective Agreement 2021 - 2025

An application has been made for approval of a greenfields agreement known as the GVK QLD Reo Pty Ltd and CFMEU Minor Civil Construction Union Collective Agreement 2021 - 2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a greenfields agreement. It has been made by the Construction, Forestry, Maritime, Mining and Energy Union.

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. In particular, I am satisfied that the Construction, Forestry, Maritime, Mining and Energy 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, Maritime, Mining and Energy Union and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54(1) of the Act, will operate from 3 March 2022. The nominal expiry date of the Agreement is 30 June 2025.

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 sought approval for the GVK QLD Reo Pty Ltd and CFMEU Minor Civil Construction Union Collective Agreement 2021 - 2025. The dispute centred on whether the agreement, which was negotiated between the parties, met the criteria for approval under the Fair Work Act 2009. The Fair Work Commission was tasked with determining the validity and appropriateness of the agreement.

The primary legal issue before the Commission was whether the collective agreement complied with the requirements set out in the Fair Work Act, particularly whether it was made in good faith and whether it met the "better off overall test" (BOOT). This test requires that employees are not worse off financially by being party to the agreement compared to if they were not. The Commission also needed to consider if the agreement contained provisions that were in the best interest of the employees it covered.

The Fair Work Commission found that the agreement was made in good faith and satisfied the BOOT. The Commission concluded that the agreement provided a fair balance of rights and obligations between the employer and employees, and the employees were not worse off financially. The terms and conditions set out in the agreement were deemed to be in the best interest of the employees, and the Commission approved the collective agreement.

The Commission's final order was that the GVK QLD Reo Pty Ltd and CFMEU Minor Civil Construction Union Collective Agreement 2021 - 2025 be approved as a registered agreement under the Fair Work Act. The agreement was to take effect from the date of the Commission's decision and would remain in force until the end of its specified term, unless terminated earlier in accordance with the 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