DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/6128)

BMC WELDING & CONSTRUCTION LOY YANG POWER INDUSTRY (AMWU & CFMEU) ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 1 MARCH 2019

Application for approval of the BMC Welding & Construction Loy Yang Power Industry (AMWU & CFMEU) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the BMC Welding & Construction Loy Yang Power Industry (AMWU & CFMEU) Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by 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.

[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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover then. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement was approved on 1 March 2019 and, in accordance with s.54, will operate from 8 March 2019. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and the Australian Manufacturing Workers' Union (AMWU) sought approval of the BMC Welding & Construction Loy Yang Power Industry (AMWU & CFMEU) Enterprise Agreement 2016. The Fair Work Commission (FWC) was tasked with determining whether the agreement met the requirements under the Fair Work Act 2009. The dispute arose from concerns about the agreement's compliance with statutory provisions, particularly regarding minimum pay rates and conditions.

The primary legal issues before the FWC were whether the agreement adequately addressed the minimum standards set by the Fair Work Act, including the requirement for employees to be paid at least the applicable award rates and conditions. The CFMEU and AMWU argued that the agreement was in compliance and provided fair and reasonable terms for the employees, while objectors contended that the agreement failed to meet the statutory minimum standards, particularly in relation to penalty rates and shift loadings.

In reaching its decision, the FWC considered the provisions of the Fair Work Act and relevant awards. The Commission examined whether the agreement provided for a minimum rate of pay not less than the applicable award rate and whether it included appropriate conditions such as penalty rates for work on public holidays, weekends, and additional hours. After thorough analysis, the FWC concluded that the agreement did comply with the statutory requirements. The agreement was found to provide adequate protection for employees, ensuring they received fair compensation for their work, and was therefore approved.

The FWC's approval of the enterprise agreement ensures that employees at BMC Welding & Construction Loy Yang Power will continue to benefit from the negotiated terms and conditions. This decision reinforces the importance of ensuring that enterprise agreements meet the minimum standards set by the Fair Work Act while also providing for fair and reasonable terms for 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