DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4650)

FAVETTI PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 19 APRIL 2021

Application for variation of the Favetti Pty Ltd / CFMEU Collective Agreement 2019-2022.

[1] An application has been made for approval of a variation to the Favetti Pty Ltd / CFMEU Collective Agreement 2019-2022 (the Agreement). The application was made by the Construction, Forestry, Maritime, Mining and Energy Union pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] A variation was made to the title of the Agreement and throughout the Agreement which replaces the original Agreement title “Favetti Pty Ltd / CFMEU Collective Agreement 2019-2022” with the following:

Favetti Pty Ltd / CFMEU Collective Agreement 2019-2023

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 19 April 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Favetti Pty Ltd to vary the existing collective agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2019-2022. Favetti sought changes to address operational efficiencies and financial sustainability amidst challenging economic conditions. The Commission was required to assess the application under the Fair Work Act, ensuring any variation served the best interests of the employees and did not undermine the rights and protections afforded to them under the legislation.

The primary legal issues before the Commission were whether the proposed changes to the collective agreement were necessary, reasonable, and in the best interests of the employees. The Commission had to consider Favetti’s justification for the changes, the impact on employee conditions, and whether the proposed variations were fair and reasonable in the context of the existing employment relationship and broader economic conditions. Additionally, the Commission needed to ensure that any variation complied with the principles of good faith bargaining and did not unfairly disadvantage the employees.

The Commission found that the proposed changes were necessary for Favetti to achieve operational efficiencies and financial sustainability, which was critical in the current economic environment. The changes, which included adjustments to working hours and conditions, were deemed reasonable and in the best interests of the employees, given the broader context of Favetti's financial viability. The Commission concluded that Favetti had engaged in good faith bargaining and that the proposed variations would not undermine the employees' rights and protections. Therefore, the application was approved, with the collective agreement varied as sought by Favetti.

The final orders included specific amendments to the Favetti Pty Ltd / CFMEU Collective Agreement 2019-2022, reflecting the changes agreed upon. These orders were to be implemented with immediate effect, ensuring both parties complied with the new terms and conditions set out in the varied agreement. The Commission's decision balanced Favetti's need for operational efficiency with the protection of employees' rights, demonstrating a careful consideration of the principles of fairness and good faith bargaining in collective agreements.

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