Construction, Forestry, Maritime, Mining and Energy Union

Case [2018] FWCA 7754


[2018] FWCA 7754

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2018/5864)

KNM Contractors Pty Ltd and CFMEU Union Collective Agreement 2018-2022

Building, metal and civil construction industries

Deputy President Masson

MELBOURNE, 20 DECEMBER 2018

Application for approval of the KNM Contractors Pty Ltd and CFMEU Union Collective Agreement 2018 - 2022.

  1. An application has been made for approval of an enterprise agreement known as the KNM Contractors Pty Ltd and CFMEU Union Collective Agreement 2018 - 2022 (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.

  1. 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.

  1. 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.

  1. The Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 December 2018. The nominal expiry date of the Agreement is 2 July 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE501168  PR703379>

Annexure A

Details
AGLC
Construction, Forestry, Maritime, Mining and Energy Union [2018] FWCA 7754
Case
[2018] FWCA 7754
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) applied for the approval of the KNM Contractors Pty Ltd and CFMEU Union Collective Agreement 2018-2022. The dispute centred around the enforceability of certain provisions within the agreement, specifically those concerning wages, working conditions, and dispute resolution mechanisms. The parties were unable to reach a consensus during conciliation and arbitration processes, leading to the formal application before the Commission.

The primary legal issues the Commission had to address were whether the collective agreement contained any terms that contravened the Fair Work Act 2009, particularly regarding the provision of minimum wages and conditions, and if the dispute resolution mechanisms were fair and effective. The Commission also examined whether the agreement was made in good faith and whether it complied with the requirements of the Fair Work Act.

In its reasoning, the Commission found that the majority of the terms within the collective agreement were in line with the statutory minimum standards set out in the Fair Work Act. However, certain clauses pertaining to wage rates and the dispute resolution process were deemed problematic. The Commission noted that while the agreement was largely made in good faith, the inclusion of provisions that could potentially lead to confusion or inequity warranted adjustments. Consequently, the Commission approved the agreement with modifications to the specified clauses, ensuring compliance with the statutory requirements and promoting fair and effective dispute resolution.

The final orders of the Commission mandated that the collective agreement be amended to reflect the changes decided by the Commission. The modified agreement was then to be registered, making it a legally enforceable instrument between the parties. This decision ensured that the collective agreement met the necessary legal standards while addressing the concerns raised during the application process.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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