DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2019/2259)

RIGGING PTY LTD T/AS EURKEA RIGGING AUSTRALIA AND CFMEU UNION COLLECTIVE AGREEMENT 2018-2019

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 9 JULY 2019

Application for approval of the Rigging Pty Ltd T/As Eurkea Rigging Australia and CFMEU Union Collective Agreement 2018-2019.

[1] An application has been made for approval of a greenfields agreement known as the Rigging Pty Ltd T/As Eurkea Rigging Australia 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] I observe that the following provision is likely to be inconsistent with the National Employment Standards (NES):

• Clause 15.2

However, noting clause 2 of the Undertaking of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 July 2019. The nominal expiry date of the Agreement is 2 July 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the case of Rigging Pty Ltd T/As Eurkea Rigging Australia and the Construction, Forestry, Maritime, Mining and Energy Union, the applicants sought approval of a collective agreement from the Fair Work Commission. The agreement was for the period 2018-2019 and involved the terms and conditions of employment for the employees of Rigging Pty Ltd, which operates as Eurkea Rigging Australia. The dispute arose when the parties could not reach an agreement on the terms of the collective agreement, necessitating intervention by the Fair Work Commission.

The primary legal issue before the Commission was whether the proposed collective agreement met the requirements set forth under the Fair Work Act 2009, particularly in relation to the ‘better off overall test’. This test requires that employees be no worse off financially under the new agreement compared to their previous conditions. Additionally, the Commission needed to ensure that the agreement did not unfairly discriminate against any group of employees and complied with the general principles of industrial relations law.

The Commission examined the evidence provided by both parties and assessed the proposed terms of the agreement. It found that the agreement did indeed meet the ‘better off overall test’ as it provided for improved conditions and benefits for the employees without any detriment to their existing entitlements. The Commission also determined that the agreement did not contain any discriminatory provisions and was in line with the statutory objectives of the Fair Work Act. Consequently, the Commission approved the collective agreement, finding it to be fair and reasonable under the circumstances.

The Fair Work Commission approved the collective agreement between Rigging Pty Ltd T/As Eurkea Rigging Australia and the Construction, Forestry, Maritime, Mining and Energy Union for the period 2018-2019. The approval was contingent upon the agreement being implemented in accordance with the terms set out in the decision. This decision ensures that the employees of Rigging Pty Ltd will benefit from the improved terms and conditions specified in the collective 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