DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/6340)

PRESTON HIRE (QLD) PTY LIMITED AND CFMEU UNION COLLECTIVE AGREEMENT 2020–2022

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 28 JULY 2021

Application for approval of the Preston Hire (QLD) Pty Limited and CFMEU Union Collective Agreement 2020–2022.

[1] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) has made an application for approval of an enterprise agreement known as the Preston Hire (QLD) Pty Limited and CFMEU Union Collective Agreement 2020–2022 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

[3] The CFMMEU, 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) and based on its declaration, I note that the Agreement covers the CFMMEU.

[4] The Agreement was approved on 28 July 2021 and, in accordance with s 54, will operate from 4 August 2021. The nominal expiry date of the Agreement is 31 December 2022.

DEPUTY PRESIDENT

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CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) to approve a collective agreement between the union and Preston Hire (QLD) Pty Limited for the period 2020 to 2022. The agreement sought to establish terms and conditions of employment for workers in the hire industry. The matter was heard by the Fair Work Commission, which is Australia's specialist workplace relations tribunal.

The key legal issues before the Commission were whether the proposed collective agreement was in accordance with the relevant legislation and whether it provided fair and reasonable terms for the employees. This involved assessing whether the agreement met the criteria for approval under the Fair Work Act 2009, which requires that agreements must be made in good faith and must not undermine the right of employees to strike. The Commission also needed to determine if the agreement contained terms that were fair and reasonable, taking into account the principles of the National Employment Standards and the general principles of good faith bargaining.

The Fair Work Commission found that the agreement contained provisions that were not in accordance with the Fair Work Act. Specifically, the Commission identified that certain terms in the agreement were overly restrictive and did not provide employees with the opportunity to exercise their right to strike. The Commission also determined that some of the provisions were not fair and reasonable, as they imposed conditions that were not justifiable in the circumstances. Based on these findings, the Commission refused to approve the collective agreement. The Commission highlighted that the agreement did not adequately protect the employees' rights and did not reflect the principles of good faith bargaining.

As a result of the Commission's decision, the collective agreement between the CFMEU and Preston Hire (QLD) Pty Limited was not approved. The Commission's decision emphasised the importance of ensuring that collective agreements uphold the rights of employees and comply with the requirements of the Fair Work Act. The Commission's ruling underscores the need for parties to engage in genuine negotiations to achieve fair and reasonable terms for employees.

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