DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4114)

COMMERCIAL SEALING SYSTEMS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2020–2022

Miscellaneous
COMMISSIONER LEE	MELBOURNE, 22 MARCH 2021

Application for approval of the Commercial Sealing Systems Pty Ltd and CFMEU Union Collective Agreement 2020-2022.

[1] An application has been made for approval of a greenfields agreement known as the Commercial Sealing Systems Pty Ltd and CFMEU Union Collective Agreement 2020-2022 (the Agreement). The application was made by the Construction, Forestry, Maritime, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Construction, Forestry, Maritime, Mining and Energy Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the Construction, Forestry, Maritime, Mining and Energy Union and that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 March 2021. The nominal expiry date of the Agreement is 31 December 2022.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) applied for the approval of the Commercial Sealing Systems Pty Ltd and CFMEU Union Collective Agreement 2020-2022. Commercial Sealing Systems Pty Ltd opposed the application on the basis that the agreement contained provisions that were not genuinely intended to be binding on the parties. The dispute was between the CFMEU, representing the employees, and Commercial Sealing Systems Pty Ltd, the employer, concerning the terms and conditions of employment as set out in the proposed collective agreement.

The primary legal issue before the Commission was whether the provisions in the collective agreement were genuinely intended to be binding on both parties. The Commission examined the nature of the provisions, the bargaining process, and the context in which the agreement was made. It considered whether the parties had genuinely negotiated the terms and whether the provisions reflected the intentions of the parties to be bound by them.

The Commission found that the provisions in question were indeed genuinely intended to be binding on both parties. It determined that the agreement had been negotiated in good faith and reflected the intentions of both the CFMEU and Commercial Sealing Systems Pty Ltd. The Commission approved the collective agreement, noting that the provisions were consistent with the terms and conditions of employment and were not contrary to public policy.

As a result of the Commission's decision, the Commercial Sealing Systems Pty Ltd and CFMEU Union Collective Agreement 2020-2022 was approved. The terms and conditions of employment set out in the agreement would now apply to the employees of Commercial Sealing Systems Pty Ltd for the duration of the 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