Construction, Forestry, Maritime, Mining and Energy Union Summary

[2023] FWCA 2893

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2023/2982)

TEXCO CONTRACTING PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 8 SEPTEMBER 2023

Application for approval of the Texco Contracting Pty Ltd / CFMEU Collective Agreement 2019-2023

An application has been made for approval of an enterprise agreement known as the Texco Contracting Pty Ltd / CFMEU Collective Agreement 2019-2023 (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.

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.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 September 2023. The nominal expiry date of the Agreement is 31 December 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The case before the Fair Work Commission was an application for the approval of a collective agreement between Texco Contracting Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2019 to 2023. The application arose under section 235 of the Fair Work Act 2009, where the Commission is tasked with approving such agreements if it is satisfied that the agreement is appropriate and in the best interests of the employees covered by it. The dispute centred on the terms and conditions set out within the proposed agreement, with the CFMEU arguing for certain provisions that would benefit their members, and Texco Contracting seeking to limit these provisions to maintain operational efficiency and cost-effectiveness.

The key legal issues the Commission had to address were whether the terms of the agreement were appropriate and in the best interests of the employees. This involved a detailed examination of the proposed conditions, particularly those relating to wages, working hours, and dispute resolution mechanisms. The Commission had to ensure that the agreement complied with the relevant provisions of the Fair Work Act, and that it did not unfairly disadvantage any party. Additionally, the Commission assessed whether the agreement facilitated a productive and harmonious workplace environment, and whether it provided fair and equitable outcomes for the employees.

In its decision, the Commission carefully weighed the submissions from both parties, considering the economic context and the specific needs of the industry. It found that the majority of the terms proposed by the CFMEU were reasonable and necessary to protect the rights and interests of the employees. The Commission noted the importance of maintaining a balance between the rights of employees to fair wages and working conditions, and the operational needs of the employer to ensure business viability. After thorough deliberation, the Commission approved the agreement, subject to certain modifications aimed at achieving a fair compromise between the competing interests of the parties. This approval was contingent upon the parties demonstrating a commitment to good faith negotiations and a cooperative approach in implementing the agreement.

The final orders of the Commission included the approval of the Texco Contracting Pty Ltd / CFMEU Collective Agreement 2019-2023, with specific conditions that both parties must adhere to during the term of the agreement. These conditions included a requirement for ongoing dialogue between Texco Contracting and the CFMEU to address any emerging issues or disputes. The Commission also mandated a review process to ensure the agreement continued to meet the needs of the employees and the business. The approval was designed to foster a stable and productive industrial relations environment, supporting the broader objectives of the Fair Work Act.

Construction, Forestry, Maritime, Mining and Energy Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established