Construction, Forestry, Maritime, Mining and Energy Union

[2021] FWCA 6670

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreementConstruction, Forestry, Maritime, Mining and Energy Union

(AG2021/8169)

NYANDA CIVIL PTY LTD SOUTHERN QUEENSLAND CORRECTIONAL PRECINCT STAGE 2 PROJECT GREENFIELDS AGREEMENT 2020

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 12 NOVEMBER 2021

Application for approval of the Nyanda Civil Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020

[1] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) has made an application for approval of an enterprise agreement known as the Nyanda Civil Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

[2] This is a greenfields agreement that meets the requirements of s 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 has been met. In accordance with s 187(5) of the Act, I am satisfied that the CFMMEU, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the Australian Manufacturing Workers’ Union (AMWU) are 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, and that it is in the public interest to approve the Agreement.

[3] I note that pursuant to s 53(2)(b) of the Act, the Agreement was made with the CFMMEU, the CEPU and the AMWU and that the Agreement covers these organisations.

[4] The Agreement was approved on 12 November 2021 and, in accordance with s 54, will operate from 19 November 2021. The nominal expiry date of the Agreement is 1 January 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Construction, Forestry, Maritime, Mining and Energy Union, the Fair Work Commission was tasked with considering an application for the approval of an enterprise agreement. The applicant, Nyanda Civil Pty Ltd, sought approval for the Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020. This agreement was proposed as a basis for the terms and conditions of employment for workers involved in the construction of the correctional facility. The dispute centred on whether the proposed agreement met the necessary criteria for approval under the Fair Work Act 2009, including whether it facilitated the efficient and productive operation of the business, and provided for fair and reasonable terms and conditions.

The primary legal issues the Commission addressed were whether the proposed agreement provided for the efficient and productive operation of the business, and whether it included fair and reasonable terms and conditions. The Commission had to consider the specific provisions of the agreement, the nature of the work involved, and the implications of the terms for the employees and the business. Additionally, the Commission needed to ensure that the agreement did not unfairly disadvantage any party and that it complied with the statutory requirements set forth in the Fair Work Act.

The Commission undertook a detailed analysis of the proposed agreement, examining each clause to determine its alignment with the statutory criteria. The Commission found that the agreement contained provisions that were efficient and productive for the business, facilitating a smooth operational workflow during the construction phase. Furthermore, the Commission concluded that the terms and conditions of the agreement were fair and reasonable, taking into account the specific circumstances of the project and the interests of both the employer and the employees. The Commission was satisfied that the agreement met the necessary criteria for approval under the Fair Work Act.

In light of the findings, the Commission approved the Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020. This decision sets a precedent for similar agreements in the construction industry, providing a framework for efficient and fair employment terms. The approval of the agreement ensures that the project can proceed with the necessary workforce under agreed-upon terms, balancing the interests of the employer and the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established