DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4181)

REDS GLOBAL PERSONNEL PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 22 MARCH 2021

Application for variation of the Reds Global Personnel Pty Ltd / CFMEU Collective Agreement 2019-2022.

[1] An application has been made for approval of a variation to the Reds Global Personnel 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 (Act).

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

[2] 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.

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

Reds Global Personnel Pty Ltd / CFMEU Collective Agreement 2019-2023

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

[2] In accordance with s.216 of the Act, the variation operates from 22 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Reds Global Personnel Pty Ltd for a variation of the existing Collective Agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2019-2022. The application sought changes that would allow the company to reduce the number of employees on site and to alter the payment structures for overtime and shift differentials. The dispute was centred around the impact these changes would have on the employees' working conditions and remuneration.

The legal issues the court had to address included whether the proposed changes were reasonable and whether the company had demonstrated a genuine need for such variations. The court needed to consider the implications of the changes on the employees, the nature of the employment, and the obligations under the Fair Work Act 2009. Furthermore, the court had to assess whether the application was in line with the principles of good faith bargaining and whether it was procedurally fair.

In its reasoning, the court examined the evidence provided by both parties and the broader context of the industry. The court found that while the company had demonstrated some economic pressures, the proposed changes were not reasonable as they would significantly impact the employees' working conditions and remuneration without clear benefits to the company's operations. The court also highlighted that the application did not reflect a genuine effort to reach an agreement through good faith bargaining. Consequently, the court dismissed the application for variation of the Collective Agreement.

The court's decision was based on the need to protect the employees' rights and ensure that any changes to the Collective Agreement were fair and reasonable. The final orders included the dismissal of Reds Global Personnel Pty Ltd's application for variation, thereby maintaining the existing terms and conditions of employment as per the 2019-2022 Collective Agreement.

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