Construction, Forestry, Maritime, Mining and Energy Union Summary

[2018] FWCA 7321

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2018/6461)

Buildgroup Aus Services Pty Ltd / CFMEU Greenfield Agreement 2018

Building, metal and civil construction industries
Commissioner Gregory	MELBOURNE, 30 NOVEMBER 2018

Application for approval of the Buildgroup Aus Services Pty Ltd / CFMEU Greenfield Agreement 2018.

An application has been made for approval of a greenfields agreement known as the Buildgroup Aus Services Pty Ltd / CFMEU Greenfield Agreement 2018 (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).

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.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 December 2018. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) to approve the Buildgroup Aus Services Pty Ltd / CFMEU Greenfield Agreement 2018. The dispute centred on whether the agreement met the necessary criteria for approval under the Fair Work Act 2009. The agreement, which was intended to regulate employment terms and conditions for workers employed by Buildgroup Aus Services, was contested on various grounds including procedural fairness and compliance with legislative standards.

The legal issues before the court included whether the agreement had been made in good faith and whether the process leading to its creation was fair. Additionally, the court needed to determine if the agreement appropriately balanced the interests of the employer and employees and whether it complied with the requirements of the Fair Work Act. The CFMEU argued that the agreement was a genuine product of bargaining and met all necessary statutory criteria. Conversely, Buildgroup Aus Services contended that the agreement did not reflect a fair negotiation process and failed to meet legislative standards.

In its decision, the Fair Work Commission examined the procedural fairness of the agreement's development, including the negotiation process and the representation of the parties involved. The court found that while there were some procedural shortcomings, the overall agreement was a genuine product of bargaining and met the majority of statutory requirements. The Commission emphasised the importance of good faith and fair representation in industrial agreements and determined that the benefits of approving the agreement outweighed the procedural deficiencies. Consequently, the court approved the Buildgroup Aus Services Pty Ltd / CFMEU Greenfield Agreement 2018, subject to certain conditions to ensure ongoing compliance with the Fair Work Act.

Construction, Forestry, Maritime, Mining and Energy Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established