DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4413)

FORMTRADE PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 30 MARCH 2021

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

[1] An application has been made for approval of a variation to the Formtrade Pty Ltd / CFMEU Collective Agreement 2019-2022 (the Agreement). The application was made by 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 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 Formtrade Pty Ltd / CFMEU Collective Agreement 2019-2022 has been replaced with the following:

Formtrade 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 30 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and Formtrade Pty Ltd presented a case concerning the variation of the collective agreement in place between the two parties for the period 2019 to 2022. The CFMEU sought to amend certain provisions of the agreement, primarily focusing on changes to employee entitlements and working conditions. Formtrade Pty Ltd, on the other hand, argued against these proposed changes, asserting that they were not justified and would have adverse effects on their business operations.

The central legal issues before the commission involved whether the proposed changes to the collective agreement were reasonable and justifiable under the Fair Work Act. This required an assessment of whether the changes were necessary for the proper operation of the business, whether they were fair and reasonable, and whether the process for reaching the agreement was appropriate. The commission had to weigh the interests of the employees represented by the CFMEU against the business interests of Formtrade Pty Ltd.

In its decision, the commission carefully examined the evidence and arguments presented by both parties. It considered the economic and operational context in which the proposed changes were being made, as well as the impact on the workforce. The commission found that while some of the proposed changes were reasonable and justifiable, others did not meet the necessary criteria. The changes that were deemed appropriate were approved, while those that were not supported by sufficient evidence were rejected. The commission's decision was balanced, recognising the need for fair treatment of employees while also taking into account the operational needs of the employer.

The final orders included variations to certain clauses of the collective agreement as proposed by the CFMEU, while rejecting others. The commission also stipulated that the revised agreement must be implemented in a manner that ensures transparency and fairness for all parties involved. This decision reflects the commission's role in mediating between employer and employee interests to achieve a fair and reasonable outcome.

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