DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/6464)

R & J SUTHERLAND PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS STEELFIXING ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 10 AUGUST 2021

Application for approval of the R & J SUTHERLAND PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023.

[1] An application has been made for approval of an enterprise agreement known as the R & J SUTHERLAND PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Maritime, Mining and Energy Union. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 August 2021. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application for approval of the R & J Sutherland Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023, the Australian Fair Work Commission was called upon to consider the agreement between the employer and the union. The employer, R & J Sutherland Pty Ltd, is a construction company, while the union, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), represents the workers in the steelfixing industry. The dispute centred on whether the terms of the proposed enterprise agreement met the legal requirements for approval under the Fair Work Act 2009.

The primary legal issues that the Fair Work Commission had to decide were whether the agreement provided for the proper negotiation process, whether it contained all the mandated terms and conditions, and whether it met the "better off overall test". The negotiation process required the employer and the union to engage in genuine discussions and reach a consensus on the terms of the agreement. The mandated terms included provisions such as minimum wages, penalty rates, leave entitlements, and dispute resolution mechanisms. The "better off overall test" ensured that the agreement provided employees with no less favourable terms and conditions than those provided by the applicable award or previous agreement.

Upon examining the evidence presented, the Fair Work Commission found that the negotiation process had been conducted in good faith, with both parties engaging in meaningful discussions. The agreement contained all the mandated terms and conditions, including provisions for minimum wages, penalty rates, and leave entitlements. Furthermore, the Commission determined that the agreement met the "better off overall test" as it provided employees with improved terms and conditions compared to the applicable award or previous agreement. Consequently, the Commission approved the R & J Sutherland Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023.

The Fair Work Commission's final order was to approve the enterprise agreement between R & J Sutherland Pty Ltd and the CFMEU (Victorian Construction and General Division). This decision ensured that the employees in the steelfixing industry would benefit from the improved terms and conditions outlined in the agreement. The approval of the enterprise agreement was a significant step forward in maintaining fair and balanced industrial relations in the construction sector.

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