DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/4899)

VTS CONTRACTING QLD PTY LTD AND CFMMEU UNION COLLECTIVE AGREEMENT 2018-2019

Building, metal and civil construction industries
COMMISSIONER HUNT	BRISBANE, 23 OCTOBER 2018

Application for approval of the VTS Contracting QLD Pty Ltd and CFMMEU Union Collective Agreement 2018-2019

[1] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) has applied for approval of an enterprise agreement known as the VTS Contracting QLD Pty Ltd and CFMMEU Union Collective Agreement 2018-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The CFMMEU 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) and based on the statutory declaration u provided by the organisation, I note that the Agreement covers the CFMMEU.

[3] I have taken into consideration the material filed in the Commission. 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 October 2018. The nominal expiry date of the Agreement is 1 January 2019.

COMMISSIONER

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CaseChat Overview and Summary

The applicants, VTS Contracting QLD Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU), sought approval from the Fair Work Commission for the VTS Contracting QLD Pty Ltd and CFMMEU Union Collective Agreement 2018-2019. The agreement covered employees who were employed by VTS in Queensland as labourers, operatives, and tradespersons. The Commission was required to determine whether the agreement met the criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission were whether the agreement had been made in good faith and whether it promoted high wages and conditions, and whether it was otherwise in the best interests of the employees. The CFMMEU argued that the agreement had been made in good faith and promoted high wages and conditions, while VTS Contracting argued that the agreement was unfair and would impose an unreasonable financial burden on the company.

The Commission found that the agreement had been made in good faith and promoted high wages and conditions. The Commission noted that the agreement provided for a 6.5% increase in wages and conditions over the term of the agreement, which was above the rate of inflation. The Commission also found that the agreement was in the best interests of the employees, as it provided for improved conditions and protections for employees, including provisions for flexible working arrangements, leave entitlements, and dispute resolution mechanisms. The Commission approved the agreement, subject to certain modifications to address minor technical issues.

The Commission's decision provides guidance to employers and unions on the factors that it will consider when approving a collective agreement. The decision reinforces the importance of good faith bargaining and the promotion of high wages and conditions in the approval process. The decision also highlights the importance of ensuring that collective agreements are technically sound and do not impose an unreasonable financial burden on employers.

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