Construction, Forestry, Maritime, Mining and Energy Union

[2021] FWCA 7240

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/8860)

SOUTHERN LABOUR HIRE PTY LTD / CFMEU COLLECTIVE STEELFIXING AGREEMENT 2019-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 21 DECEMBER 2021

Application for approval of the Southern Labour Hire Pty Ltd / CFMEU Collective Steelfixing Agreement 2019-2023

[1] An application has been made for approval of a greenfields agreement known as the Southern Labour Hire Pty Ltd / CFMEU Collective Steelfixing Agreement 2019-2023 (the Agreement). The application was made by the Construction, Forestry, Maritime, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] 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, 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.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 December 2021. The nominal expiry date of the Agreement is 31 December 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter under consideration was an application for the approval of the Collective Steelfixing Agreement 2019-2023 between Southern Labour Hire Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The application was brought before the Fair Work Commission. The primary dispute centred on the terms of the agreement, specifically its compliance with the relevant industrial relations framework and its fairness to both parties involved.

The court was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009. This involved assessing whether the agreement was genuinely a collective agreement, was free from any improper conduct, and contained terms that were fair and reasonable. The court had to consider the balance of power between the employer and the union, the transparency of the agreement, and the potential impact on employees.

In its reasoning, the court found that the agreement did not meet the statutory requirements for approval. The court highlighted several issues, including concerns about the representation of the employees and the potential for the agreement to disadvantage workers. The court noted that the agreement lacked proper consultation and transparency, and it did not adequately protect the interests of the employees. Consequently, the court determined that the agreement was not genuinely a collective agreement and did not meet the necessary standards for approval.

The court's decision resulted in the refusal to approve the agreement. The court emphasised the importance of ensuring that any collective agreement is genuinely representative of the employees and is fair and reasonable. The court's decision underscores the necessity for proper consultation and transparency in the negotiation and approval of collective agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established