DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/5676)

CHAPEL INDUSTRIES PTY LTD / CFMEU COLLECTIVE AGREEMENT 2018

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 24 OCTOBER 2018

Application for approval of the Chapel Industries Pty Ltd / CFMEU Collective Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Chapel Industries Pty Ltd / CFMEU Collective Agreement 2018 (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] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] 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.

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

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union applied for the approval of a collective agreement between Chapel Industries Pty Ltd and the union. The application involved the negotiation and formalisation of terms and conditions of employment for workers within the company, including aspects of wages, hours of work, and other employment-related matters. The union argued that the agreement was necessary to regulate the employment relationship in a manner that was fair and equitable, while Chapel Industries Pty Ltd contested certain provisions of the agreement, primarily focused on the implications for their operational flexibility and cost management.

The primary legal issue before the Commission was whether the provisions of the collective agreement complied with the applicable provisions of the Fair Work Act 2009. This included assessing whether the agreement met the criteria for being a lawful and fair agreement, such as ensuring that it did not contravene any minimum standards set by the Fair Work Act, and whether it was negotiated in good faith. Additionally, the court had to consider whether the agreement appropriately balanced the interests of both the employer and the employees.

The Commission found that the majority of the provisions in the agreement were in compliance with the Fair Work Act. The court emphasised the importance of ensuring that agreements facilitate a fair and productive workplace while also allowing for the employer’s operational needs. The Commission approved the agreement with minor modifications to certain clauses, ensuring that these changes did not unjustifiably impact the balance of rights and obligations between the parties. The modifications were aimed at addressing specific concerns raised by Chapel Industries Pty Ltd regarding certain operational flexibilities.

The final orders included the approval of the collective agreement with the specified modifications, ensuring that both parties' interests were appropriately balanced. The agreement was thus authorised to be binding on all employees covered by it, provided that it complied with the Fair Work Act and other relevant industrial instruments.

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