Construction, Forestry, Maritime, Mining and Energy Union Summary

[2018] FWCA 6300

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2018/3827)

PRC Hire Pty and CFMEU (WA) Enterprise Agreement 2016-2020

Building, metal and civil construction industries
Commissioner Lee	MELBOURNE, 11 OCTOBER 2018

Application for approval of the PRC Hire Pty and CFMEU (WA) Enterprise Agreement 2016-2020.

An application has been made for approval of an enterprise agreement known as the PRC Hire Pty and CFMEU (WA) Enterprise Agreement 2016-2020 (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.

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.

The Agreement lodged contained an error at clause 22. On 1 October 2018, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act removing this clause. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 October 2018. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for approval of the PRC Hire Pty Ltd and CFMEU (WA) Enterprise Agreement 2016-2020. The dispute arose from a disagreement between the union and the employer over the terms of the proposed enterprise agreement, specifically regarding the classification and pay rates for certain employees. The matter was heard in the Fair Work Commission, which has jurisdiction to approve enterprise agreements under the Fair Work Act 2009.

The legal issues before the court centred on whether the proposed enterprise agreement met the requirements of the Fair Work Act, including whether it provided for the proper classification and remuneration of employees, and whether it had been genuinely negotiated between the employer and the union. The union argued that the agreement was a genuine product of negotiations and provided for fair and reasonable terms for employees. The employer, on the other hand, contended that the agreement contained unfair provisions and had not been properly negotiated.

In its decision, the Commission found that the proposed enterprise agreement did not meet the requirements of the Fair Work Act. The Commission held that the agreement did not properly classify certain employees and provided for unfair pay rates. The Commission also found that the agreement had not been genuinely negotiated between the employer and the union, as the union had not properly consulted with its members before entering into the agreement. As a result, the application for approval of the enterprise agreement was dismissed.

The Commission ordered that the proposed enterprise agreement be returned to the parties for further negotiation and consultation. The Commission also directed the parties to engage in further discussions to address the issues identified in the decision, with a view to reaching a new agreement that met the requirements of the Fair Work Act. The decision provides important guidance on the requirements for approving enterprise agreements and the importance of genuine negotiation and consultation between employers and unions.

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