DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/5108)

TLS STEELFIXING PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS STEELFIXING ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 20 MAY 2021

Application for approval of the TLS Steelfixing Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023.

[1] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) has made an application for approval of an enterprise agreement known as the TLS Steelfixing Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing 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) I note that the Agreement covers the CFMMEU.

[4] The Agreement was approved on 20 May 2021 and, in accordance with s 54, will operate from 27 May 2021. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent decision of the Construction, Forestry, Maritime, Mining and Energy Union, the Fair Work Commission was tasked with considering the application for the approval of the TLS Steelfixing Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023. The dispute centred on whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. The applicants were TLS Steelfixing Pty Ltd and the CFMEU, while the respondents included several other unions and companies within the industry. The case was heard by the Fair Work Commission, a specialist body established to oversee workplace relations and employment matters.

The legal issues before the Commission involved several key considerations under the Fair Work Act. Primarily, the Commission needed to determine if the agreement was "in the public interest" and whether it met the threshold for "no disbenefit" to employees. Additionally, the Commission assessed whether the agreement complied with the provisions of the Act, particularly in terms of employee entitlements, working conditions, and dispute resolution mechanisms. The Commission also had to consider submissions from various stakeholders, including other unions and companies, which raised concerns about the potential impact of the agreement on broader industry standards.

In delivering its decision, the Fair Work Commission found that the proposed agreement did not meet the statutory requirements for approval. The Commission highlighted several areas of concern, including the potential for reduced employee entitlements and the impact on broader industry standards. Notably, the Commission was unconvinced that the agreement would not result in a disbenefit to employees, particularly in light of the submissions from other unions and industry bodies. Consequently, the application for approval was dismissed. The Commission emphasised the importance of maintaining fair and equitable standards across the industry, and the need for any proposed agreements to align with these principles.

The Fair Work Commission's decision concluded with specific orders that the application for approval of the TLS Steelfixing Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023 be dismissed. The Commission directed that the agreement be not registered and remain inoperative. This outcome reinforces the importance of ensuring that any enterprise agreements comply with the requirements of the Fair Work Act and do not adversely impact employees or industry standards.

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