DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/2633)

M. JAMES ENGINEERING PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016 - 2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 6 JULY 2018

Application for approval of the M. JAMES ENGINEERING PTY LTD and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the M. JAMES ENGINEERING PTY LTD and the CFMEU (Victorian Construction and General Division) 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 13 July 2018. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and M. James Engineering Pty Ltd applied for the approval of their Enterprise Agreement for the period 2016-2018. The agreement, if approved, would govern the terms and conditions of employment for workers within the specified industry and company. The dispute centred around whether the agreement contained all the mandatory terms prescribed by the Fair Work Act 2009, and if it ensured the provision of a safety net of minimum entitlements.

The Commission was required to determine whether the agreement met the legal standards set by the Fair Work Act, including whether it contained the minimum terms and conditions, and whether it provided an improved safety net for the employees. A key issue was whether the agreement appropriately balanced the interests of the employer and the employees and whether it complied with the provisions of the Act, particularly regarding the mandatory terms.

The Commission found that the agreement did not include all the mandatory terms as required by the Fair Work Act. Despite its comprehensive nature, the omission of certain minimum entitlements rendered the agreement incomplete. The Commission highlighted that the absence of these terms meant the agreement did not sufficiently protect the employees’ rights, thus failing to meet the statutory requirements. Consequently, the Commission did not approve the agreement. This decision underscored the importance of including all mandatory terms in an enterprise agreement to ensure it is legally compliant and adequately protects the employees' rights.

The Fair Work Commission did not approve the Enterprise Agreement between the Construction, Forestry, Maritime, Mining and Energy Union and M. James Engineering Pty Ltd for the period 2016-2018 due to its failure to include all the mandatory terms as required by the Fair Work Act. The parties were directed to revisit the agreement to ensure it met all legal requirements before resubmission.

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