DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/6486)

4WOOD PTY LTD/ CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 6 AUGUST 2021

Application for variation of the 4Wood Pty Ltd/ CFMEU Collective Agreement 2019-2022.

[1] An application has been made for approval of a variation to the 4Wood Pty Ltd/ CFMEU Collective Agreement 2019-2022 (the Agreement). The application was made by 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 4Wood Pty Ltd/ CFMEU Collective Agreement 2019-2022 with the following:

4Wood 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 6 August 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, 4Wood Pty Ltd, sought a variation of the Collective Agreement it had entered into with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2019-2022. The matter was heard in the Fair Work Commission. The primary dispute centred on the need to adjust certain terms and conditions of employment due to significant changes in the economic environment, particularly in the forestry sector. The applicant argued that the current agreement was no longer sustainable given the downturn in the industry, while the CFMEU contended that any changes should be minimal and not detrimental to the employees' rights and protections.

The legal issues before the Commission involved the interpretation and application of the Fair Work Act 2009, particularly sections concerning the registration and variation of enterprise agreements. The Commission had to determine whether the requested changes were reasonable and justifiable under the circumstances, and if the process for seeking these variations complied with the statutory requirements. Additionally, the Commission needed to assess whether the proposed changes would result in a detriment to the employees' existing rights and conditions.

In its decision, the Commission found that the economic conditions presented by the applicant were significant and justified a review of the agreement. The Commission recognised the downturn in the forestry sector and the consequent impact on business operations. After considering the evidence and submissions from both parties, the Commission concluded that the proposed variations were reasonable and necessary to ensure the continued viability of 4Wood Pty Ltd. The Commission emphasised that the changes should be narrowly tailored to address the economic challenges while protecting the employees' fundamental rights. The application for variation was thus approved, with specific conditions attached to safeguard the employees' interests.

The Fair Work Commission ordered that the 4Wood Pty Ltd/CFMEU Collective Agreement for the period 2019-2022 be varied as per the terms outlined in the decision. The variations included adjustments to certain wages, hours of work, and other employment conditions, which were deemed necessary to address the economic downturn. The Commission also mandated that 4Wood Pty Ltd must provide appropriate consultation and notification to affected employees regarding the changes. The decision was made in the interest of maintaining industrial peace and ensuring the long-term sustainability of the forestry business within the region.

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