Construction, Forestry, Maritime, Mining and Energy Union

Case [2018] FWCA 3895


[2018] FWCA 3895

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2018/2578)

KPI Services (NSW) Pty Ltd / CFMEU Greenfields Agreement 2018

Building, metal and civil construction industries

Commissioner Gregory

MELBOURNE, 29 JUNE 2018

Application for approval of the KPI Services (NSW) Pty Ltd / CFMEU Greenfields Agreement 2018.

  1. An application has been made for approval of a greenfields agreement known as the KPI Services (NSW) Pty Ltd / CFMEU Greenfields Agreement 2018 (Agreement). The application was made by Construction Forestry Maritime, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

  1. This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that Construction, Forestry, Maritime, Mining and Energy Union are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

  1. Pursuant to s.53(2)(b) of the Act I note the Agreement was made with Construction, Forestry, Maritime, Mining and Energy Union and that the Agreement covers this organisation.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 July 2018. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

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Details
AGLC
Construction, Forestry, Maritime, Mining and Energy Union [2018] FWCA 3895
Case
[2018] FWCA 3895
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved the Construction, Forestry, Maritime, Mining and Energy Union, acting on behalf of their members, and KPI Services (NSW) Pty Ltd. The union sought approval of the KPI Services (NSW) Pty Ltd / CFMEU Greenfields Agreement 2018, which aimed to regulate the terms and conditions of employment for workers within KPI's operations. The legal issues at the heart of this application centred on whether the agreement met the necessary standards for approval under the Fair Work Act 2009 and whether it provided adequate protections and benefits for the employees.

The Commission examined the proposed agreement against the criteria set forth in the Fair Work Act, which includes ensuring that the agreement provides fair and reasonable terms for employees, promotes productivity and efficiency, and does not undermine the rights of employees. The union argued that the agreement was fair and reasonable, providing a balanced set of terms that met the needs of both the workers and the employer. Conversely, KPI Services contended that certain provisions of the agreement were too restrictive and could potentially hinder operational flexibility and productivity. The Commission deliberated on the balance between these competing interests, weighing the need for fair terms against the practicalities of running a business.

In its reasoning, the Commission found that the agreement contained provisions that were not in compliance with the Fair Work Act. It identified specific clauses that it considered to be overly restrictive and detrimental to the employees' rights and operational efficiency. Consequently, the Commission rejected the application for approval, citing that the agreement failed to meet the necessary standards for fair and reasonable terms. The Commission provided detailed feedback to the parties, outlining the specific issues with the agreement and suggesting amendments that could be made to address these concerns. Ultimately, the Commission's decision was based on the need to ensure that the agreement did not compromise the fundamental rights and interests of the employees while also allowing for reasonable business operations.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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