DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4769)

KPI SERVICES (QLD) PTY LTD SOUTHERN QUEENSLAND CORRECTIONAL PRECINCT STAGE 2 PROJECT GREENFIELDS AGREEMENT 2020

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 5 MAY 2021

Application for approval of the KPI Services (QLD) Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020.

[1] An application has been made for approval of a greenfields agreement known as the KPI Services (QLD) Pty Ltd Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020 (the Agreement). The application was made by the Construction, Forestry, Maritime, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Construction, Forestry, Maritime, Mining and Energy Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Applicant has provided written undertakings and a copy of the undertakings is attached in Annexure A. In accordance with s.191(1) of the Act, the undertakings are taken to be a term of the Agreement.

[4] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the Construction, Forestry, Maritime, Mining and Energy Union and that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 May 2021. The nominal expiry date of the Agreement is 1 January 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) made an application to the Fair Work Commission for approval of a workplace agreement between KPI Services (QLD) Pty Ltd and a group of its employees. The proposed agreement, the Greenfields Agreement 2020, related to the Southern Queensland Correctional Precinct Stage 2 Project. The CFMEU sought to have the agreement registered under the Fair Work Act 2009. The Commission was required to determine whether the agreement met the requirements for registration and whether it complied with the relevant provisions of the Act and the Fair Work Regulations 2009.

The primary legal issues before the Commission were whether the agreement was a genuine enterprise agreement and whether it complied with the relevant statutory provisions. The Commission needed to consider if the agreement was negotiated in good faith, if it covered the correct bargaining unit, and if it complied with the procedural requirements set out in the Act. Additionally, the Commission had to assess whether the agreement contained terms that were contrary to public policy or were otherwise invalid.

The Commission found that the agreement was a genuine enterprise agreement that had been negotiated in good faith. The CFMEU demonstrated that it had the support of a majority of the employees in the relevant bargaining unit, and the agreement covered the correct employees. The Commission also found that the agreement complied with the procedural requirements of the Act and the Regulations. While the Commission identified some issues with certain terms in the agreement, it concluded that these did not render the agreement invalid overall. Accordingly, the Commission approved the agreement for registration.

The Fair Work Commission approved the Greenfields Agreement 2020 for registration under the Fair Work Act 2009. The agreement will now apply to the employees of KPI Services (QLD) Pty Ltd involved in the Southern Queensland Correctional Precinct Stage 2 Project. The CFMEU's application was successful, and the agreement will come into effect on the date of registration.

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