DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2019/2861)

CHRIS LUCAS PTY. LTD. AND CFMEU UNION COLLECTIVE AGREEMENT 2018-2019

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 22 AUGUST 2019

Application for approval of the Chris Lucas Pty. Ltd. and CFMEU Union Collective Agreement 2018-2019.

[1] An application has been made for approval of a greenfields agreement known as the Chris Lucas Pty. Ltd. and CFMEU Union Collective Agreement 2018-2019 (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 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] The Applicant has provided written undertakings and a copy of the undertakings is attached in Annexure A. In accordance with s.191(2) of the Act, the undertakings are taken to be a term of the Agreement.

[4] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with Construction, Forestry, Maritime, Mining and Energy Union and that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 August 2019. The nominal expiry date of the Agreement is 1 January 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for approval of a collective agreement between Chris Lucas Pty. Ltd. and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2018-2019. The central issue was whether the agreement met the criteria for approval under the Fair Work Act 2009, including that it be free of provisions that would have an adverse effect on the economy. The Commission was required to determine if the agreement contained any such detrimental provisions and if it otherwise met the standards for approval.

The Commission examined the terms of the agreement, focusing on potential economic impacts and compliance with statutory provisions. It was noted that the agreement included several provisions that could be seen as potentially adverse, such as certain wage increases and changes in work conditions that might affect productivity and profitability. However, the Commission also recognised the importance of fair bargaining and the need to support legitimate trade union activities. The balance between these considerations led the Commission to conclude that while some provisions were problematic, the overall agreement did not have an adverse effect on the economy to the extent that it warranted disapproval.

In light of its analysis, the Commission approved the agreement, subject to certain conditions that aimed to mitigate the identified adverse effects. These conditions included a requirement for ongoing monitoring of the agreement’s impact on the parties' economic performance. The Commission found that the potential benefits of the agreement, in terms of industrial peace and fair treatment of employees, outweighed the risks posed by the problematic provisions. The final order was for the approval of the agreement with the specified conditions attached.

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