Construction, Forestry, Maritime, Mining and Energy Union Summary

[2021] FWCA 6369

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/7755)

CHERRIE CIVIL ENGINEERING PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 21 OCTOBER 2021

Application for variation of the Cherrie Civil Engineering Pty Ltd / CFMEU Collective Agreement 2019-2022

[1] An application has been made for approval of a variation to the Cherrie Civil Engineering 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 Cherrie Civil Engineering Pty Ltd / CFMEU Collective Agreement 2019-2022 with the following:

Cherrie Civil Engineering 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 21 October 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by Cherrie Civil Engineering Pty Ltd for a variation of the Collective Agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the years 2019-2022. The application was heard by the Fair Work Commission. The employer sought to alter certain provisions of the existing agreement to accommodate changes in the business environment, including economic pressures and a shift in the nature of work undertaken by the company.

The primary legal issue before the Commission was whether the proposed changes were reasonable in all circumstances. The Commission had to balance the employer's need for flexibility and adaptability against the rights and entitlements of the employees as stipulated in the existing collective agreement. This involved assessing the reasonableness of the proposed changes in light of various factors, including the employer's capacity to meet its financial obligations, the nature of the changes, and the impact on employees.

In its decision, the Commission noted that the employer had demonstrated a significant downturn in its business due to the economic climate and changes in the industry. The proposed changes were aimed at addressing these challenges and ensuring the long-term viability of the company. The Commission concluded that the changes were reasonable, considering the employer's need for flexibility and the impact of broader economic factors. The Commission found that the changes did not undermine the fundamental rights of the employees and were necessary to meet the changing business environment. The application was subsequently approved.

The Fair Work Commission ordered that the Collective Agreement between Cherrie Civil Engineering Pty Ltd and the CFMEU for the years 2019-2022 be varied as per the terms outlined in the employer's application. The changes included modifications to certain provisions related to wages, hours of work, and other employment conditions. The decision provided the employer with the flexibility needed to navigate the economic challenges, while also ensuring that the employees' rights were protected to the greatest extent possible.

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