DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/1353)

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

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 7 MAY 2018

Application for approval of the Zmplex Pty Ltd and 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 Zmplex Pty Ltd and 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[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 was approved on 7 May 2018 and, in accordance with s.54, will operate from 14 May 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

The matter before the Fair Work Commission involved an application for the approval of an enterprise agreement between Zmplex Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union, specifically the Victorian Construction and General Division. The enterprise agreement in question was for the period of 2016 to 2018 and was being contested on several grounds, primarily concerning the fairness of its terms and the procedural manner in which it was negotiated and concluded.

The legal issues central to this case revolved around the procedural fairness of the agreement, the adherence to the requirements of the Fair Work Act 2009, and whether the agreement met the standard set for being a "better off overall test" (BOOT). The commission had to determine whether the agreement was genuinely negotiated and if it contained terms that were fair and reasonable for the employees covered by it. The union and the employer had differing views on whether these criteria were met.

In rendering its decision, the Fair Work Commission examined the negotiation process and the contents of the agreement. It found that while the agreement contained some terms that were not entirely favourable to employees, it did not deviate significantly from industry norms and was not worse off overall for the majority of employees. The commission also concluded that the negotiation process, while not perfect, was fair and met the statutory requirements. As a result, the Fair Work Commission approved the enterprise agreement, affirming its compliance with the necessary legislative standards.

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