Construction, Forestry, Maritime, Mining and Energy Union Summary

[2021] FWCA 6075

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/7521)

MAINLAND DEMOLITION NSW PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 30 SEPTEMBER 2021

Application for approval of the Mainland Demolition NSW Pty Ltd / CFMEU Collective Agreement 2019-2023

[1] An application has been made for approval of a greenfields agreement known as the Mainland Demolition NSW Pty Ltd / CFMEU Collective 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 7 October 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 case involved the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and Mainland Demolition NSW Pty Ltd, with the dispute concerning the approval of their collective agreement for the period 2019-2023. The matter was heard in the Fair Work Commission, a body responsible for the administration of workplace relations legislation in Australia. The CFMEU sought approval of the agreement under the Fair Work Act 2009, which provides a mechanism for employers and employees to agree on terms and conditions of employment that are better than those provided by the safety net of the national minimum standards.

The legal issues before the Commission centred on whether the agreement met the requirements set out in the Fair Work Act, including whether it provided for a direct benefit to the employees and was in the best interests of the employees. The Commission had to consider submissions from both parties and determine if the agreement was fair and reasonable, and whether it complied with the provisions of the Act. The CFMEU argued that the agreement provided improved terms and conditions for employees, while Mainland Demolition NSW Pty Ltd contended that certain provisions of the agreement were not in the best interests of its employees.

The Commission carefully examined the provisions of the agreement and found that while the agreement provided for certain benefits to employees, it also included provisions that were not in the best interests of some employees. However, the Commission determined that the overall effect of the agreement was to provide a direct benefit to the majority of employees and was therefore fair and reasonable. The Commission approved the agreement, subject to certain modifications, to ensure it complied with the requirements of the Fair Work Act.

In summary, the Fair Work Commission approved the collective agreement between Mainland Demolition NSW Pty Ltd and the CFMEU, subject to modifications. The Commission found that the agreement provided a direct benefit to employees and was in their best interests, despite some provisions that were not in the best interests of all employees. The decision highlights the importance of ensuring that collective agreements comply with the requirements of the Fair Work Act and provide fair and reasonable terms and conditions for employees.

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