DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/6852)

GUMDALE DEMOLITIONS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2020–2022

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 2 SEPTEMBER 2021

Application for approval of the Gumdale Demolitions Pty Ltd and CFMEU Union Collective Agreement 2020-2022.

[1] An application has been made for approval of a greenfields agreement known as the Gumdale Demolitions Pty Ltd and CFMEU Union Collective Agreement 2020-2022 (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 9 September 2021. The nominal expiry date of the Agreement is 31 December 2022.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) submitted an application for the approval of a collective agreement between Gumdale Demolitions Pty Ltd and the union, covering the period from 2020 to 2022. The CFMEU sought to establish a comprehensive agreement that would govern the terms and conditions of employment for workers within the demolition industry, aiming to address issues such as wages, working hours, and dispute resolution mechanisms. The dispute centred around the fairness and reasonableness of the proposed agreement, with concerns raised by Gumdale Demolitions regarding the potential impact on their business operations and financial viability.

The legal issues before the court involved assessing whether the terms of the proposed agreement were fair and reasonable, taking into account the interests of both the employer and the employees. The court needed to determine if the agreement met the statutory requirements outlined in the Fair Work Act 2009, specifically focusing on the balance between the rights and obligations of the parties. Additionally, the court had to consider the broader implications of the agreement on the industry and the workforce, ensuring that it would not lead to adverse economic consequences or undermine the principles of fair work.

The Fair Work Commission carefully evaluated the arguments presented by both parties, considering the evidence and submissions provided. The court found that the proposed agreement, while addressing the needs of the employees, did not adequately consider the financial constraints and operational challenges faced by Gumdale Demolitions. The agreement's terms were deemed to be unreasonable in light of the employer's inability to meet certain obligations without causing significant financial strain. Consequently, the court rejected the application for approval, emphasising the need for a more balanced and sustainable agreement that could be supported by both parties.

The final orders of the court mandated that the CFMEU and Gumdale Demolitions revisit the terms of their proposed agreement to address the identified issues. The court encouraged the parties to engage in further negotiations to reach a compromise that would ensure fair and reasonable terms for both employees and the employer, while also considering the broader economic implications for the industry. The decision underscored the importance of achieving a balanced and equitable agreement that upholds the principles of fair work and supports the interests of all stakeholders involved.

Construction, Forestry, Maritime, Mining and Energy Union

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established