Construction, Forestry, Maritime, Mining and Energy Union Summary

[2021] FWCA 6668

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/8174)

IPR CONTRACTING 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 IPR Contracting 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 IPR Contracting 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

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) has sought to intervene in a matter involving the approval of the IPR Contracting Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020. The primary dispute revolves around the union's contention that the agreement does not adequately protect workers' rights, particularly in relation to wages and conditions, as stipulated under the Fair Work Act 2009. The case was heard in the Fair Work Commission (FWC), Australia's independent national workplace relations tribunal.

The key legal issues before the FWC centred on whether the proposed agreement provided a sufficient safety net for employees engaged in the project, including provisions for minimum wage rates, allowances, and other entitlements. The union argued that the agreement fell short of the standards set by relevant awards and agreements, potentially undermining the rights of workers. The FWC was tasked with determining whether the agreement complied with the requirements of the Fair Work Act and whether it was in the best interest of the employees.

In its decision, the FWC examined the provisions of the agreement against the benchmarks set by the relevant awards and agreements. The FWC found that while the agreement did include provisions for wages and conditions, it did not fully align with the standards set by the Building and Construction General On-site Award 2010. The FWC also considered the broader implications for the employees, including the potential impact on their rights and protections. Ultimately, the FWC determined that the agreement did not provide an adequate safety net and therefore did not meet the requirements for approval under the Fair Work Act.

As a result of this determination, the FWC did not grant approval to the IPR Contracting Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020. The union's intervention was thus successful in preventing the agreement from being approved, highlighting the importance of ensuring that workers' rights are protected under employment agreements.

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