Construction, Forestry, Maritime, Mining and Energy Union Summary

[2023] FWCA 1239

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2023/1181)

LG GROUP CIVIL OPERATIONS PTY LTD AS TRUSTEE FOR LG GROUP CIVIL OPERATIONS UNIT TRUST T/AS LG GROUP CIVIL AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS EARTHMOVING, EXCAVATION AND DRAINAGE ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 8 MAY 2023

Application for approval of the LG GROUP CIVIL OPERATIONS PTY LTD AS TRUSTEE FOR LG GROUP CIVIL OPERATIONS UNIT TRUST T/As LG GROUP CIVIL and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the LG GROUP CIVIL OPERATIONS PTY LTD AS TRUSTEE FOR LG GROUP CIVIL OPERATIONS UNIT TRUST T/As LG GROUP CIVIL and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2020-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Maritime, Mining and Energy Union. The Agreement is a single enterprise agreement.

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.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 May 2023. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties in this matter are the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and LG Group Civil Operations Pty Ltd, represented by its trustee, T/As LG Group Civil. The dispute was brought before the Fair Work Commission, a federal Australian tribunal, regarding the approval of an enterprise agreement between the CFMEU and LG Group Civil Operations Pty Ltd for the period 2020-2023. The central issue before the Commission was whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009.

The Commission had to determine whether the agreement provided for a fair and efficient bargaining process, included proper provisions for minimum wages and conditions, and was consistent with the principles of the Fair Work Act. The CFMEU argued that the agreement was fair and equitable, while LG Group Civil Operations Pty Ltd contended that certain provisions were unreasonable or unfair. The Commission evaluated the evidence and arguments presented by both parties, considering the economic context and the implications for the workforce involved.

In reaching its decision, the Commission examined the bargaining process, the fairness of the terms, and the compliance with legal requirements. The Commission found that while the agreement contained some provisions that were contentious, the overall balance of the agreement was fair and met the statutory criteria for approval. The Commission approved the agreement, noting that it provided for a reasonable framework for employment conditions and was consistent with the broader objectives of the Fair Work Act. The decision was made in the interest of maintaining fair and efficient industrial relations.

The Fair Work Commission approved the LG Group Civil Operations Pty Ltd and CFMEU Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2020-2023, subject to the terms and conditions specified in the decision. The Commission's approval ensures that the agreement will be binding on the parties and their employees, providing a stable framework for industrial relations in the specified sectors.

Construction, Forestry, Maritime, Mining and Energy Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established