DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/3562)

SGK CERAMICS & STONE PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) TILELAYERS ENTERPRISE AGREEMENT 2016 -2018

Building, metal and civil construction industries
COMMISSIONER SAUNDERS	NEWCASTLE, 14 AUGUST 2018

Application for approval of the SGK CERAMICS & STONE PTY LTD and the CFMEU (Victorian Construction and General Division) Tilelayers Enterprise Agreement 2016 -2018.

[1] An application has been made for approval of an enterprise agreement known as the SGK CERAMICS & STONE PTY LTD and the CFMEU (Victorian Construction and General Division) Tilelayers Enterprise Agreement 2016 -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 21 August 2018. The nominal expiry date of the Agreement is 30 September 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicants, the Construction, Forestry, Maritime, Mining and Energy Union, and SGK Ceramics & Stone Pty Ltd, sought approval of the Tilelayers Enterprise Agreement 2016-2018 from the Fair Work Commission. The agreement was to cover employees working for SGK Ceramics & Stone Pty Ltd, a small ceramic tile manufacturing business, and was to be registered under the Fair Work Act 2009. The dispute centred on whether the agreement met the criteria for approval under the Act, specifically whether it was a "better off overall test" (BOOT) agreement.

The primary legal issue before the Commission was whether the proposed agreement was fair and balanced, and provided a safety net for employees, as required by section 234 of the Act. The Commission had to consider whether the agreement provided for appropriate minimum wages, entitlements, and conditions, and whether it included a BOOT provision that ensured employees were not worse off than they would be under the applicable award. Additionally, the Commission had to determine whether the agreement met the "in good faith" requirement of section 230 of the Act.

In determining that the agreement met the requirements for approval, the Commission found that it provided for wages and conditions that were no less favourable than those set out in the applicable award, and contained a BOOT provision. The Commission also found that the agreement had been made in good faith, as both parties had engaged in genuine bargaining and had considered the interests of their employees. The Commission concluded that the agreement was fair and balanced and met the criteria for approval under the Act.

The Fair Work Commission approved the Tilelayers Enterprise Agreement 2016-2018, finding that it met the requirements for registration under the Fair Work Act 2009. The agreement was registered and became a legally binding contract between SGK Ceramics & Stone Pty Ltd and the relevant employees.

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