DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2019/1138)

AZTECH HOLDING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2018-2019

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 2 MAY 2019

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

[1] An application has been made for approval of a greenfields agreement known as the Aztech Holding 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 9 May. 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

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for approval of a collective agreement with Aztech Holding Pty Ltd. The agreement in question, titled the Aztech Holding Pty Ltd and CFMEU Union Collective Agreement 2018-2019, was contested by Aztech, which raised several objections. The primary focus of the dispute was whether the collective agreement complied with the statutory requirements set out in the Fair Work Act 2009. Specifically, Aztech argued that the agreement failed to meet the criteria for fair and reasonable terms, particularly concerning the conditions of employment, including wages, hours of work, and other relevant terms.

The legal issues before the Fair Work Commission involved determining whether the agreement provided for terms and conditions that were fair and reasonable, and whether the agreement complied with the statutory provisions that mandate fair and reasonable terms. The Commission had to assess whether the agreement provided for fair and reasonable terms and conditions, and whether it was consistent with the principles of good faith bargaining. Additionally, the Commission examined whether the agreement adequately protected the rights of employees and whether it complied with the mandatory requirements of the Fair Work Act.

The Fair Work Commission, after careful consideration, found that the agreement did not meet the statutory requirements for fair and reasonable terms. The Commission identified several deficiencies, including inadequate provisions for wages and hours of work, which did not align with the principles of fairness and reasonableness. The Commission also noted that the agreement failed to adequately protect the rights of employees, thereby contravening the statutory provisions. Consequently, the Commission decided that the agreement did not comply with the Fair Work Act and rejected the application for approval.

The Fair Work Commission ordered that the Aztech Holding Pty Ltd and CFMEU Union Collective Agreement 2018-2019 be rejected, and it was not approved. The Commission directed the parties to review and renegotiate the terms of the agreement to ensure compliance with the Fair Work Act. The decision underscored the importance of ensuring that collective agreements provide for fair and reasonable terms and conditions, and that they are consistent with the statutory requirements for good faith bargaining and the protection of employee rights.

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