DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2018/752)

HANSEN YUNCKEN PTY LTD / CFMEU COLLECTIVE AGREEMENT 2018

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 29 MARCH 2018

Application for approval of the Hansen Yuncken Pty Ltd / CFMEU Collective Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Hansen Yuncken Pty Ltd / CFMEU Collective Agreement 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 5 April 2017. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

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CaseChat Overview and Summary

In the matter of the Construction, Forestry, Maritime, Mining and Energy Union (CFME Union) and Hansen Yuncken Pty Ltd, the Fair Work Commission (FWC) was called upon to approve a collective agreement between the CFMEU and Hansen Yuncken. The CFMEU sought to have the 2018 collective agreement approved, which included provisions for pay rates, hours of work, and conditions of employment for employees of Hansen Yuncken.

The primary legal issue for the FWC to determine was whether the collective agreement complied with the requirements of the Fair Work Act 2009, specifically whether it met the 'better off overall test' (BOOT). This test ensures that employees are not worse off overall as a result of the agreement and that it provides a safety net of minimum entitlements. The FWC also needed to consider whether the agreement met the criteria for being a 'single formula agreement', as this would exempt it from certain provisions of the Act.

The FWC found that the collective agreement met the BOOT, as it provided employees with improved conditions and entitlements compared to the applicable award. The FWC noted that the agreement provided for higher pay rates, improved leave provisions, and better redundancy provisions. The FWC also found that the agreement met the criteria for being a 'single formula agreement', as it provided a single formula for calculating pay rates and did not vary the applicable award provisions in a manner that would undermine the safety net of minimum entitlements. The FWC was satisfied that the agreement provided a fair and reasonable outcome for both the employees and the employer.

The FWC approved the collective agreement, subject to certain conditions and modifications. These included clarification of certain provisions, removal of certain clauses that were found to be inconsistent with the Act, and the addition of a clause to ensure that employees who were not members of the CFMEU were not disadvantaged by the agreement. The FWC noted that the agreement provided a good basis for industrial relations in the construction industry and was in the best interests of both the employees and the employer.

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