DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2019/1055)

DRIX GROUP PTY LTD / CFMEU GREENFIELD AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER LEE	SYDNEY, 17 APRIL 2019

Application for approval of the Drix Group Pty Ltd / CFMEU Greenfield Agreement 2019.

[1] An application has been made for approval of a greenfields agreement known as the Drix Group Pty Ltd / CFMEU Greenfield Agreement 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] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 April 2019. The nominal expiry date of the Agreement is 1 July 2019.

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 a Greenfield Agreement between Drix Group Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union. The agreement in question, the Drix Group Pty Ltd / CFMEU Greenfield Agreement 2019, was proposed as a framework to govern the employment conditions for workers engaged by Drix Group, a company involved in civil construction and associated industries. The nature of the dispute centred around whether the proposed agreement provided adequate protections and benefits for employees and whether it adhered to the standards set by the Fair Work Act 2009.

The legal issues the court was required to decide encompassed several key areas. Firstly, the court needed to assess whether the agreement contained minimum terms and conditions that were no less favourable than those provided by the relevant industrial instrument. Secondly, it was necessary to determine whether the agreement allowed for a fair balance between the rights and obligations of employers and employees. Additionally, the court had to examine whether the agreement was negotiated in good faith and whether it included appropriate dispute resolution mechanisms. The overarching concern was to ensure that the agreement did not undermine the protections afforded to employees under the Fair Work Act.

In its decision, the Fair Work Commission closely examined the provisions of the proposed agreement. The court found that the agreement did indeed provide for minimum terms and conditions that were at least as favourable as those in the applicable industrial instruments. It also determined that the agreement balanced the rights and obligations of both parties appropriately. Furthermore, the negotiation process was deemed to have been conducted in good faith, and the dispute resolution mechanisms were considered adequate. Consequently, the Commission approved the Drix Group Pty Ltd / CFMEU Greenfield Agreement 2019, deeming it compliant with the requirements of the Fair Work Act.

The final orders of the Commission were to approve the proposed agreement, subject to its registration with the Fair Work Commission. The agreement was to be effective from the date of approval and would govern the employment conditions for workers engaged by Drix Group Pty Ltd. This decision reinforced the importance of ensuring that Greenfield Agreements not only facilitate the establishment of new businesses but also uphold the rights and protections of employees.

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