DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4077)

ARGUS CONSTRUCTION SERVICES (NSW) PTY LTD T-AS ARGUS TRAFFIC/CFMEU COLLECTIVE AGREEMENT 2019-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 19 MARCH 2021

Application for approval of the Argus Construction Services (NSW) Pty Ltd t-as Argus Traffic/CFMEU Collective Agreement 2019-2023.

[1] An application has been made for approval of a greenfields agreement known as the Argus Construction Services (NSW) Pty Ltd t-as Argus Traffic/CFMEU Collective Agreement 2019-2023 (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 26 March 2021. The nominal expiry date of the Agreement is 31 December 2023.

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) applied for approval of the Argus Traffic/CFMEU Collective Agreement 2019-2023. The agreement was entered into between the CFMEU and Argus Construction Services (NSW) Pty Ltd, trading as Argus Traffic. The union sought the Commission's approval of the agreement under section 235 of the Fair Work Act 2009, as it believed the agreement met the "better off overall test" and therefore warranted registration.

The primary legal issue before the Commission was whether the proposed agreement satisfied the requirements of the better off overall test. This test mandates that, when compared with the applicable award or safety net, employees covered by the agreement must be "better off overall" in terms of their total remuneration and conditions. The Commission had to consider whether the agreement provided employees with improved terms and conditions that would compensate them for any disadvantages arising from the absence of safety net protections.

In determining whether the agreement was better off overall, the Commission evaluated the overall benefit to employees, taking into account both financial and non-financial components. The Commission found that the agreement provided employees with a combination of increased wages, improved leave entitlements, and enhanced safety measures. These enhancements were considered to outweigh any potential disadvantages resulting from the absence of safety net protections. Consequently, the Commission approved the Argus Traffic/CFMEU Collective Agreement 2019-2023, finding it to be in compliance with the better off overall test.

The Commission's decision was based on a comprehensive analysis of the agreement's provisions and their impact on employees' total remuneration and conditions. By approving the agreement, the Commission acknowledged the improvements it offered to employees and recognised the union's efforts in negotiating a favourable outcome. The final orders of the Commission were that the Argus Traffic/CFMEU Collective Agreement 2019-2023 be approved and registered under the Fair Work Act 2009.

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