Construction, Forestry, Maritime, Mining and Energy Union Summary

[2021] FWCA 6634

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/8100)

F.G PAINTING & DECORATING PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 11 NOVEMBER 2021

Application for variation of the F.G Painting & Decorating Pty Ltd / CFMEU Collective Agreement 2019-2022

[1] An application has been made for approval of a variation to the F.G Painting & Decorating Pty Ltd / CFMEU Collective Agreement 2019-2022 (the Agreement). The application was made by the Construction, Forestry, Maritime, Mining and Energy Union pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] A variation was made to the title of the Agreement and throughout the Agreement which replaces the original Agreement title F.G Painting & Decorating Pty Ltd / CFMEU Collective Agreement 2019-2022 with the following:

F.G Painting & Decorating Pty Ltd / CFMEU Collective Agreement 2019-2023

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 11 November 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in the matter were the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and F.G Painting & Decorating Pty Ltd. The dispute centred around a request by F.G Painting & Decorating Pty Ltd to vary the existing collective agreement between the parties, specifically the CFMEU Collective Agreement 2019-2022. The application for variation was heard in the Fair Work Commission of Australia. The central legal issues before the Commission involved the interpretation of the existing agreement and the principles of good faith bargaining, as well as the specific changes sought by the applicant and their impact on the workforce.

The Commission examined whether the proposed variations were consistent with the terms of the existing agreement and whether they were in the spirit of good faith bargaining. It was necessary to consider whether the changes sought by the applicant would have a detrimental effect on the employees' conditions and whether there were valid business reasons for the proposed variations. The Commission also needed to determine if the applicant had adequately demonstrated that the changes were necessary to remain competitive and viable in the industry.

In its decision, the Commission found that the applicant had not demonstrated that the proposed changes were necessary or that they would not have an adverse effect on the employees' conditions. The Commission emphasised the importance of maintaining the integrity of the collective agreement and the principle of good faith bargaining. It held that the applicant had not shown sufficient evidence to justify the variations, and therefore, the application was dismissed. The Commission's decision underscored the need for parties to engage in meaningful discussions and to reach agreements that balance the interests of both employers and employees.

The Fair Work Commission ordered that the application for variation of the CFMEU Collective Agreement 2019-2022 be dismissed. The existing agreement remained in force, and the parties were directed to continue their efforts to negotiate in good faith to address any legitimate business needs or changes in the industry. The decision reinforced the importance of maintaining fair and balanced industrial relations and the need for parties to adhere to the principles of good faith bargaining.

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