DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/6007)

CITY STEEL FABRICATION 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, 16 JULY 2021

Application for approval of the CITY STEEL FABRICATION 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 CITY STEEL FABRICATION 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 23 July 2021. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for approval of an enterprise agreement between City Steel Fabrication Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023. The application raised questions about the agreement's compliance with the Fair Work Act 2009 and whether the agreement was made in the spirit of the Act. The CFMEU argued that the agreement was fair and reasonable, while City Steel Fabrication Pty Ltd contended that certain provisions were not compliant with the Act.

The court had to determine whether the agreement met the criteria for approval as outlined in the Fair Work Act. This involved assessing whether the agreement dealt with the employees' terms and conditions of employment, whether it was made in good faith, and whether it was fair and reasonable in all its aspects. The court also considered whether the agreement complied with the good faith bargaining requirements and whether the agreement was consistent with the Fair Work Act's purpose of achieving an efficient, productive and harmonious workplace relations system.

The Fair Work Commission approved the agreement, finding that it met the requirements for approval under the Fair Work Act. The Commission noted that the agreement had been made in good faith and was fair and reasonable in all its aspects. The Commission rejected City Steel Fabrication Pty Ltd's argument that certain provisions were not compliant with the Act, finding that they were consistent with the principles of the Act and did not undermine its purpose.

The Commission's final orders were that the agreement be approved, effective from the date of the Commission's decision. The agreement was to be registered with the Fair Work Commission and would be binding on the parties for the duration of its term. The decision confirms that enterprise agreements must be made in good faith and be fair and reasonable in all their aspects to be approved by the Fair Work Commission.

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