DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2020/566)

FAVETTI PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 18 MARCH 2020

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

[1] An application has been made for approval of an enterprise agreement known as the Favetti Pty Ltd / CFMEU Collective Agreement 2019-2022 (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] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 March 2020. The nominal expiry date of the Agreement is 31 December 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Favetti Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) in an application for approval of their collective agreement for the years 2019-2022. The application was heard by the Fair Work Commission (FWC). The core dispute centred on whether the proposed terms of the collective agreement complied with the relevant legislative requirements and whether they were fair and reasonable.

The primary legal issues before the FWC were whether the agreement adhered to the provisions of the Fair Work Act 2009 and whether it met the standard of being a "better off overall test" (BOOT). This test ensures that the employees are at least as well off under the new agreement as they were under the previous one, or they are better off overall. The FWC also needed to assess if the agreement appropriately balanced the rights and obligations of both the employer and the employees.

In reaching its decision, the FWC examined the provisions of the proposed agreement in detail, considering the changes proposed in terms of wages, hours of work, leave entitlements, and other conditions. The FWC took into account submissions from both parties, relevant industry benchmarks, and broader economic factors. Ultimately, the Commission determined that the agreement met the statutory requirements and passed the BOOT, finding it to be fair and reasonable. The FWC approved the Favetti Pty Ltd / CFMEU Collective Agreement 2019-2022, thus resolving the dispute in favour of the applicant.

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