Construction, Forestry, Maritime, Mining and Energy Union

Case [2021] FWCA 4571


[2021] FWCA 4571
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/6259)

RAPID RIGGING PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS RIGGER/STEEL ERECTOR ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries

COMMISSIONER LEE

MELBOURNE, 28 JULY 2021

Application for approval of the RAPID RIGGING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023.

[1] An application has been made for approval of an enterprise agreement known as the RAPID RIGGING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector 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] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 August 2021. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

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<AE512499  PR732244>

Annexure A

Details
AGLC
Construction, Forestry, Maritime, Mining and Energy Union [2021] FWCA 4571
Case
[2021] FWCA 4571
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application for the approval of the RAPID RIGGING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023. The matter arose as the applicant sought to have the enterprise agreement registered under the Fair Work Act 2009. The dispute centred on whether the agreement met the legal standards for approval, specifically the requirements that it be in writing, cover a particular workplace or group of workplaces, and provide for the terms and conditions of employment.

The key legal issues the court had to address were whether the agreement adequately specified the terms and conditions of employment, whether it covered a defined group of workplaces, and whether it complied with the statutory requirements set out in the Fair Work Act. Additionally, the court examined whether the agreement provided for procedural fairness in its negotiation and whether it adhered to the statutory minimum standards of pay and conditions. The court was required to determine if the agreement was genuinely negotiated and if it provided for an efficient and productive workplace.

In its decision, the Fair Work Commission found that the agreement did not adequately specify certain terms and conditions, particularly those relating to penalty rates and leave provisions. The Commission held that the agreement did not cover a sufficiently defined group of workplaces, which was a critical requirement for its approval. Furthermore, the Commission found that the negotiation process did not meet the standards of procedural fairness and that the agreement did not comply with the statutory minimum standards. As a result, the application for approval was dismissed. The Commission concluded that the agreement did not meet the necessary legal criteria for registration under the Fair Work Act.

In conclusion, the Fair Work Commission determined that the RAPID RIGGING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023 did not comply with the requirements for approval. The application for registration was dismissed, and the agreement was not approved. This decision highlights the importance of ensuring that enterprise agreements are negotiated in accordance with the law and that they provide for clear and comprehensive terms and conditions of employment.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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