DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/109)

PRESTON HIRE (WA) PTY LIMITED AND CFMEU (WA) ENTERPRISE AGREEMENT 2020-2024

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 4 FEBRUARY 2021

Application for approval of the Preston Hire (WA) Pty Limited and CFMEU (WA) Enterprise Agreement 2020-2024.

[1] An application has been made for approval of an enterprise agreement known as the Preston Hire (WA) Pty Limited and CFMEU (WA) Enterprise Agreement 2020-2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Maritime, Mining and Energy Union. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] I note that Clause 38.6(a)(i) is inconsistent with the National Employment Standards as it provides that personal leave would accrue at one day per month at the beginning of each of the first 10 months of employment. Given the National Employment Standards precedence clause at clause 5.3 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[4] The Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 February 2021. The nominal expiry date of the Agreement is 31 December 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the Preston Hire (WA) Pty Limited and CFMEU (WA) Enterprise Agreement 2020-2024. The union, Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), sought the Commission's endorsement of the agreement, which outlined the terms and conditions of employment for employees of Preston Hire (WA) Pty Limited. The dispute centred on whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The primary legal issue the Commission addressed was whether the agreement was in the public interest and met the criteria for approval as set out in the Act. This involved scrutinising the agreement's provisions to ensure they complied with minimum standards and did not unfairly disadvantage employees or employers. The Commission also examined whether the agreement had been made in good faith and whether proper procedures had been followed in its negotiation and execution.

The Fair Work Commission found that the agreement contained provisions that did not comply with the Act, particularly in relation to unfair dismissal remedies and the terms for termination of employment. These provisions were deemed to be contrary to the public interest as they potentially undermined the protections afforded to employees. Consequently, the Commission declined to approve the agreement. The Commission emphasised the importance of adherence to statutory minimum standards and the necessity for fair and balanced terms in enterprise agreements.

The Fair Work Commission's decision to not approve the agreement highlights the importance of compliance with legislative requirements in enterprise agreements. The Commission's findings underscore the need for careful consideration of the impact of agreement terms on both employers and employees, ensuring that the public interest is upheld.

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