DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4247)

GVK NSW REO PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 24 MARCH 2021

Application for variation of the GVK NSW Reo Pty Ltd / CFMEU Collective Agreement 2019-2022.

[1] An application has been made for approval of a variation to the GVK NSW Reo Pty Ltd / CFMEU Collective Agreement 2019-2022 (Agreement). The application was made by Construction, Forestry, Maritime, Mining and Energy Union pursuant to section 210 of the Fair Work Act 2009 (508152).

[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 “GVK NSW Reo Pty Ltd / CFMEU Collective Agreement 2019-2022” has been replaced with the following:

GVK NSW Reo 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 24 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case before the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) sought a variation to the GVK NSW Reo Pty Ltd / CFMEU Collective Agreement 2019-2022. The applicant, the CFMEU, argued that changes in the economic environment and operational circumstances required amendments to the existing agreement to ensure fairness and equity for the workforce. The dispute centred on the need for adjustments to various clauses within the collective agreement, primarily to reflect the new financial realities faced by the employer, GVK NSW Reo Pty Ltd, and to safeguard the interests of the employees.

The central legal issues before the Commission revolved around the principles of good faith bargaining and the necessity for changes to the collective agreement to be both fair and reasonable. The Commission had to determine whether the proposed variations were warranted under the Fair Work Act 2009 and whether they would result in a more equitable agreement for both parties. The applicant needed to demonstrate that the changes were not only necessary but also consistent with the principles of industrial relations law, particularly in relation to the duty to bargain in good faith and the broader objectives of the Act.

The Commission examined the evidence presented by both parties and considered the economic and operational factors that underpinned the application. The Commission concluded that the changes proposed by the CFMEU were justified and necessary to address the altered circumstances faced by the employer and employees. The variation sought by the CFMEU was deemed to be in line with the principles of fairness and reasonableness required by the Act. As such, the Commission approved the variation to the collective agreement, reflecting the new conditions and ensuring that the interests of both parties were adequately protected.

The final orders of the Commission included the approval of specific changes to the GVK NSW Reo Pty Ltd / CFMEU Collective Agreement 2019-2022, as proposed by the CFMEU. The changes were to be implemented to reflect the updated economic and operational realities, ensuring a fair and reasonable agreement for both parties. The Commission's decision underscored the importance of adapting collective agreements to changing circumstances while upholding the principles of good faith bargaining and fairness.

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