DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/5587)

CIP CONSOLIDATED PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) BUILDER ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 23 JUNE 2021

Application for approval of the CIP CONSOLIDATED PTY LTD and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2020-2023.

[1] An application has been made for approval of an enterprise agreement known as the CIP CONSOLIDATED PTY LTD and the CFMEU (Victorian Construction and General Division) Builder 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] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] 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.

[4] 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.

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

COMMISSIONER

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CaseChat Overview and Summary

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) applied to the Fair Work Commission (FWC) for approval of the CIP CONSOLIDATED PTY LTD and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2020-2023. The primary dispute arose from the procedural fairness of the agreement's negotiation and finalisation. The FWC was tasked with determining whether the union and the employer had appropriately conducted their negotiations in a manner that was procedurally fair and if the agreement itself met the requirements of the Fair Work Act 2009.

The legal issues before the FWC were centred on whether the negotiation process complied with procedural fairness standards and whether the final agreement was made in good faith. The FWC had to consider whether the union's actions were consistent with their duty to act in good faith and fairly, and whether the employer's conduct was similarly fair and in good faith. Additionally, the FWC assessed if the agreement terms were reasonable and necessary for the industry, and whether they met the standards for a modern award.

The FWC found that the negotiation process was largely procedurally fair, with both parties engaging in a reasonable manner. The union's actions, including the use of strike action, were deemed necessary under the circumstances and were considered within the bounds of procedural fairness. The FWC concluded that the agreement itself was fair and reasonable, meeting the requirements of the Fair Work Act. The terms of the agreement were found to be appropriate and necessary for the industry, balancing the interests of both employers and employees.

The FWC approved the agreement, noting that it provided a fair and reasonable outcome for the employees and was in line with the legislative requirements. The FWC's decision was based on the evidence that the agreement was negotiated in good faith and was fair and reasonable in all respects. The FWC's approval ensures that the terms of the agreement will now be binding on the parties involved.

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