DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/6263)

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

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 27 JULY 2021

Application for approval of the Scaffold Logistics Commercial Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023.

[1] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) has made an application for approval of the Scaffold Logistics Commercial Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023 (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. 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.

[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 27 July 2021 and, in accordance with s 54, will operate from 3 August 2021. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

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CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by the Scaffold Logistics Commercial Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (Victorian Construction and General Division) for the approval of a new enterprise agreement. The agreement, titled the Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023, was to replace the existing one and cover the period between 2020 and 2023. The dispute centred on whether the agreement adequately met the requirements under the Fair Work Act 2009 for approval, particularly in terms of meeting the “better off overall test” and ensuring the agreement did not adversely affect employees’ rights and conditions.

The key legal issues addressed by the Commission were whether the proposed agreement provided employees with a better outcome than the existing agreement and whether it complied with all statutory provisions. The Commission had to consider if the agreement met the minimum entitlements prescribed by the relevant awards and whether it provided for fair and reasonable terms and conditions of employment. The fairness of the agreement was evaluated in light of the economic circumstances and the bargaining positions of the parties involved.

In its decision, the Commission found that the proposed agreement met the better off overall test, as it provided employees with improved wages, leave entitlements, and other benefits compared to the existing agreement. The Commission noted the parties' good faith negotiations and the agreement's compliance with statutory minimum standards. The Commission approved the agreement, stating that it provided a fair and reasonable outcome for employees, considering the economic context and the bargaining dynamics between the employer and the union. The Commission's decision emphasised the importance of the agreement in ensuring fair and reasonable terms of employment within the industry.

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