DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/2071)

AAMS CONSTRUCTION PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016 -2018

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 1 JUNE 2018

Application for approval of the AAMS Construction 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 AAMS Construction 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 8 June 2018. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) sought approval of the AAMS Construction Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The agreement, which covered employees of AAMS, aimed to outline terms and conditions of employment for the period between 2016 and 2018. The dispute centred around whether the agreement complied with the Fair Work Act 2009 and whether it met the requirements for being a "better off overall test" (BOOT).

The central legal issues before the court were whether the enterprise agreement provided for terms and conditions that were no less favourable than the applicable modern awards and whether the agreement satisfied the BOOT. This required an examination of whether the financial and non-financial benefits provided by the agreement to the employees outweighed any detriments. The court also had to assess if the agreement adhered to procedural fairness, including whether proper consultation was conducted with the employees.

The Fair Work Commission concluded that the enterprise agreement did comply with the Fair Work Act and met the BOOT. The Commission found that the agreement provided for terms and conditions that were at least as favourable as the applicable modern awards. It determined that the benefits provided to employees in both financial and non-financial terms were sufficient to outweigh any potential detriments. Additionally, the Commission was satisfied that the consultation process was adequate and that the agreement was made in good faith. Consequently, the Commission approved the enterprise agreement.

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