DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2019/4809)

FREO GROUP PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 24 DECEMBER 2019

Application for approval of the Freo Group Pty Ltd and CFMEU Union Collective Agreement 2019-2022.

[1] An application has been made for approval of an enterprise agreement known as the Freo Group Pty Ltd and CFMEU Union 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] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[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 31 December 2019. The nominal expiry date of the Agreement is 2 July 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) sought approval of the Freo Group Pty Ltd and CFMEU Union Collective Agreement 2019-2022. The dispute was heard by the Fair Work Commission (FWC). The CFMEU argued that the agreement, which was negotiated in good faith, met the criteria for approval under the Fair Work Act 2009. The Freo Group Pty Ltd did not contest the negotiation process but raised concerns about certain clauses within the agreement, particularly those relating to working conditions and employee entitlements.

The legal issues before the FWC included whether the agreement had been negotiated in good faith and whether it contained provisions that were contrary to public policy or otherwise unfair. The FWC had to consider the balance between the rights of employers to manage their business and the rights of employees to fair working conditions, as enshrined in the Fair Work Act. Additionally, the FWC needed to determine if the agreement was consistent with the principles of the Australian labour market and if it provided an appropriate framework for resolving workplace disputes.

The FWC found that the agreement had indeed been negotiated in good faith and that the majority of its provisions were fair and reasonable. The FWC noted that while some clauses raised concerns, these did not render the entire agreement unfair. The FWC made several minor amendments to the agreement to address the identified issues, ensuring that it complied with the Fair Work Act. The FWC concluded that the benefits of approving the agreement outweighed any potential drawbacks, and it was in the best interests of both the employees and the employer. The FWC approved the agreement with the amendments.

The final orders of the FWC included the approval of the Freo Group Pty Ltd and CFMEU Union Collective Agreement 2019-2022, subject to the amendments made by the FWC. The agreement was to be registered with the Fair Work Commission, and the parties were directed to abide by the terms of the approved agreement.

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