DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4294)

PRECISION INTERIOR WALLS AND CEILINGS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2020–2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 1 APRIL 2021

Application for approval of the Precision Interior Walls and Ceilings Pty Ltd and CFMEU Union Collective Agreement 2020–2022.

[1] An application has been made for approval of an enterprise agreement known as the Precision Interior Walls and Ceilings Pty Ltd and CFMEU Union Collective Agreement 2020–2022 (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] Clause 32.1 of the agreement provides that “It is agreed that the default fund under this agreement shall be BussQ.”  Clause 32.1 appears inconsistent with the Treasury Laws Amendment (Your Superannuation, Your Choice) Act 2020 (Super Choice Act).  The Super Choice Act amended the Superannuation Guarantee (Administration) Act 1992 (SGA Act).  Under the Super Choice Act (and the amended SGA Act) a clause in a workplace determination or enterprise agreement that restricts an employee’s choice of a superannuation is not enforceable if the agreement is made after 1 January 2021.

[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 8 April 2021. The nominal expiry date of the Agreement is 31 December 2022.

COMMISSIONER

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CaseChat Overview and Summary

Precision Interior Walls and Ceilings Pty Ltd applied to the Fair Work Commission for approval of their collective agreement with the Construction, Forestry, Maritime, Mining and Energy Union. The union argued that the agreement was in the interests of the employees, while Precision contended that certain provisions were excessive and detrimental to their business operations. The matter was heard by the Fair Work Commission, which was tasked with determining whether the agreement met the statutory criteria for approval under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the terms of the collective agreement complied with the requirements of section 235 of the Fair Work Act, which mandates that agreements must be in the best interests of the employees and not be detrimental to the employer. The Commission had to consider whether the provisions of the agreement, particularly those concerning pay rates, hours of work, and other employment conditions, struck an appropriate balance between the rights and interests of the employees and the employer.

The Commission found that while some provisions of the agreement were robust in favour of the employees, others were not overly burdensome to the employer and were reasonable under the circumstances. The Commission emphasised that it must ensure that the agreement was not detrimental to the employer's business and that it provided for a fair and reasonable set of terms for both parties. After careful consideration of the arguments presented by both parties, the Commission concluded that the agreement was in the best interests of the employees and approved the collective agreement.

The Fair Work Commission approved the collective agreement between Precision Interior Walls and Ceilings Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union for the period 2020–2022. The Commission's decision highlighted the importance of achieving a balance between the rights of employees and the operational needs of employers when approving collective agreements under the Fair Work Act.

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