DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2020/705)

APPLICATION FOR APPROVAL OF THE FORMANN GROUP PTY LTD /CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 30 MARCH 2020

Application for approval of the Formann Group Pty Ltd /CFMEU Collective Agreement 2019-2022.

[1] An application has been made for approval of a greenfields agreement known as the FORMANN GROUP PTY LTD /CFMEU COLLECTIVE AGREEMENT 2019-202 (the Agreement). The application was made by 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 6 April 2020. 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) filed an application for the approval of a collective agreement with Formann Group Pty Ltd for the period 2019-2022. The dispute centred around the terms and conditions of employment within the agreement, specifically the provisions related to wages, hours of work, and other employment conditions. The CFMEU argued that the agreement was fair and reasonable, while Formann Group Pty Ltd contested certain clauses, contending they were overly restrictive or not in line with industry standards.

The primary legal issues before the Commission were whether the collective agreement complied with the requirements of the Fair Work Act 2009 and whether it provided for fair and reasonable terms and conditions. The Commission needed to determine if the agreement was made in good faith and whether it adhered to the principles of enterprise bargaining and good faith negotiation. Additionally, the Commission assessed whether the agreement provided for fair and reasonable terms and conditions of employment, including consideration of the needs of both the employees and the employer.

In its decision, the Fair Work Commission found that the majority of the provisions in the collective agreement were fair and reasonable. The Commission noted that the agreement had been negotiated in good faith and reflected a balance between the interests of the employees and the employer. However, the Commission made several modifications to certain clauses to ensure they were fair and reasonable and complied with the relevant legislative framework. The Commission ultimately approved the collective agreement with the modifications, ensuring it met the statutory requirements and provided for fair and reasonable terms and conditions of employment.

The final orders of the Commission included the approval of the collective agreement with the aforementioned modifications. The parties were directed to implement the approved agreement, and the Commission set a timeline for the review of the agreement to ensure ongoing compliance with 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