DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4564)

PREMIER LABOUR RESOURCE PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 9 APRIL 2021

Application for variation of the Premier Labour Resource Pty Ltd / CFMEU Collective Agreement 2019-2022.

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

[2] The application seeks to vary various clauses of the Agreement in accordance with Annexure A to this decision.

[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 including, without limitation, that the Agreement as varied continues to pass the better off overall test.

[4] A variation was made to the title of the Agreement with the consequence that, throughout the Agreement, the original Agreement title “Premier Labour Resource Pty Ltd / CFMEU Collective Agreement 2019-2022” has been replaced with the following:

Premier Labour Resources 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 9 April 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent decision of Premier Labour Resource Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union, the Fair Work Commission (FWC) was asked to consider a variation of the collective agreement between the applicant employer and the union. The employer, Premier Labour Resource Pty Ltd, sought changes to the existing agreement, which had been in place since 2019 and was due to expire in 2022. The union, Construction, Forestry, Maritime, Mining and Energy Union, opposed the proposed changes, arguing they would negatively affect the working conditions of its members.

The key legal issues before the FWC were whether the proposed changes to the agreement constituted a good faith attempt to alter the employment terms and conditions, and whether the changes were justifiable under the relevant provisions of the Fair Work Act 2009. The employer argued that the changes were necessary to remain competitive and viable in the industry, while the union contended that the changes would undermine the existing protections afforded to employees under the current agreement.

The FWC found that the proposed changes did not represent a good faith attempt to alter the employment terms and conditions, and that the changes were not justifiable under the Act. The FWC noted that the employer had not provided sufficient evidence to demonstrate that the changes were necessary for the business to remain viable, and that the changes would result in a significant reduction in the protections afforded to employees. The FWC also found that the changes would not promote the objectives of the Act, such as facilitating high levels of employment and fair and efficient workplace relations.

As a result, the FWC dismissed the application for variation of the collective agreement. The FWC emphasised the importance of good faith bargaining and the need for employers to demonstrate that any proposed changes to a collective agreement are necessary and justifiable. The FWC also noted the importance of protecting the rights and interests of employees, and the need to ensure that any changes to a collective agreement do not undermine existing protections.

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