DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2020/517)

LACK GROUP CONSTRUCTION PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 13 MARCH 2020

Application for approval of the PREMIUM PRECAST PTY LTD and the CFMEU (Victorian Construction and General Division) Precast Panel Enterprise Agreement 2019-2020 Application for approval of the Lack Group Construction Pty Ltd / CFMEU Collective Agreement 2019-2022.

[1] An application has been made for approval of an enterprise agreement known as the PREMIUM PRECAST PTY LTD and the CFMEU (Victorian Construction and General Division) Precast Panel Enterprise Agreement 2019-2020 Application for approval of the Lack Group Construction 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 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 20 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 matter before the Fair Work Commission involved an application for the approval of two separate enterprise agreements: the PREMIUM PRECAST PTY LTD and the CFMEU (Victorian Construction and General Division) Precast Panel Enterprise Agreement 2019-2020, and the Lack Group Construction Pty Ltd / CFMEU Collective Agreement 2019-2022. The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) sought the approval of these agreements, which were intended to govern the employment conditions of workers in the precast panel and construction industries respectively.

The central legal issues before the Commission were whether the proposed agreements met the requirements of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreements had been made in accordance with the procedural requirements set out in the Act, and if they contained terms that were consistent with the Act's provisions, including the requirement for "genuine agreement" and the "better off overall test" (BOOT). The Commission also had to consider if the agreements contained terms that were consistent with the provisions of the Act and if they provided for a "fair and reasonable" set of terms and conditions.

The Fair Work Commission found that the agreements had been made in accordance with the procedural requirements of the Fair Work Act. It was satisfied that the process followed in reaching the agreements was fair and that there was a genuine attempt to negotiate. The Commission also determined that the agreements met the "better off overall test" as they provided for improvements in various terms and conditions for the employees, including wages, leave entitlements, and other benefits. The Commission concluded that the agreements provided for a fair and reasonable set of terms and conditions, and approved the agreements as meeting the requirements of the Act.

As a result, the Fair Work Commission approved the PREMIUM PRECAST PTY LTD and the CFMEU (Victorian Construction and General Division) Precast Panel Enterprise Agreement 2019-2020, and the Lack Group Construction Pty Ltd / CFMEU Collective Agreement 2019-2022, bringing them into effect. These agreements now govern the employment conditions of workers in the respective industries and will remain in force until the end of their respective terms.

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