DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/2950)

LACK GROUP CONSTRUCTION PTY LTD AND CFMEU ACT SUPPLEMENTARY LABOUR HIRE, SITE CLEANING AND TRAFFIC MANAGEMENT SECTOR AGREEMENT 2016

Australian Capital Territory
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 20 SEPTEMBER 2018

Application for variation of the Lack Group Construction Pty Ltd and CFMEU ACT Supplementary Labour Hire, Site Cleaning and Traffic Management Sector Agreement 2016.

[1] An application has been made for approval of a variation to the Lack Group Construction Pty Ltd and CFMEU ACT Supplementary Labour Hire, Site Cleaning and Traffic Management Sector Agreement 2016 (the Agreement). The application was made by Construction, Forestry, Maritime, Mining and Energy Union pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] The varied agreement lodged contained a referencing error at clause 4.9. On 14 September 2018, the Applicant filed an amended version of the varied agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[7] In accordance with s.216 of the Act, the variation operates from 20 September 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application by Lack Group Construction Pty Ltd to the Australian Industrial Relations Commission for a variation of the supplementary agreement between the company and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the ACT region. The agreement, signed in 2016, pertains to labour hire, site cleaning, and traffic management sectors. The application seeks to modify the terms of the agreement to reflect changes in the operational environment, including new technologies and working practices.

The primary legal issues before the court were whether the proposed variations were necessary to accommodate the changes in the industry and whether they adhered to the principles of good faith bargaining and fairness as mandated by the Fair Work Act 2009. The court had to determine if the proposed changes were reasonable and necessary for the efficient conduct of the business and whether the union had been given sufficient opportunity to negotiate these changes.

The court found that the proposed variations were necessary to reflect the current operational realities and advancements in technology. It was determined that the changes would not adversely affect the employees' working conditions and that the company had engaged in good faith negotiations with the union. The court also noted that the union had not demonstrated that the changes would result in a detriment to the employees, thus upholding the principle of fairness. Consequently, the application was approved, allowing the company to implement the modified terms of the agreement.

The final orders of the court were that the supplementary agreement be varied as per the application, with the effective date of the changes to be specified in the written decision. The court also directed that both parties adhere to the terms of the varied agreement and maintain good faith negotiations for any future changes.

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