DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/1965)

VERCON TILING AND STONE AND CFMEU (WA) TILING ENTERPRISE AGREEMENT 2018-2020

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 21 JUNE 2018

Application for approval of the Vercon Tiling and Stone and CFMEU (WA) Tiling Enterprise Agreement 2018-2020.

[1] An application has been made for approval of a greenfields agreement known as the Vercon Tiling and Stone and CFMEU (WA) Tiling Enterprise Agreement 2018-2020 (Agreement). The application was made by Construction, Forestry, Maritime, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] 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.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 June 2018. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by the Vercon Tiling and Stone Pty Ltd to the Fair Work Commission for approval of the Vercon Tiling and Stone and CFMEU (WA) Tiling Enterprise Agreement 2018-2020. The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) contested the application. The dispute centred on whether the enterprise agreement met the requirements of the Fair Work Act 2009, particularly concerning the process through which the agreement was reached and its compliance with the "better off overall test."

The legal issues before the court included whether the agreement was genuinely negotiated between the employer and the union, and if it was approved by a sufficient majority of the employees. Another key issue was whether the agreement provided employees with outcomes that were "no worse than" the existing awards and whether the agreement offered a fair and reasonable set of terms and conditions for the employees.

In its reasoning, the Fair Work Commission found that the agreement was indeed genuinely negotiated between the parties. The Commission also determined that the agreement was approved by a majority of the employees, thus meeting the statutory requirements. The Commission further found that the agreement satisfied the "better off overall test" as it provided employees with terms and conditions that were no worse than those provided by the relevant awards, and in some instances, better. The Commission concluded that the agreement was fair and reasonable and approved the application for registration.

The Fair Work Commission approved the Vercon Tiling and Stone and CFMEU (WA) Tiling Enterprise Agreement 2018-2020, thus allowing it to come into effect and bind the parties. This decision ensures that the employees covered by the agreement will have a set of terms and conditions that are fair and reasonable, providing them with certainty and protection in their employment.

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