Construction, Forestry, Maritime, Mining and Energy Union Summary

[2023] FWCA 1154

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2023/1084)

SGA RIGGING PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS RIGGER/STEEL ERECTOR ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 27 APRIL 2023

Application for approval of the SGA RIGGING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the SGA RIGGING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector 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 4 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 case involved an application for the approval of an enterprise agreement between SGA RIGGING PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Rigger/Steel Erector Enterprise Agreement 2020-2023. The Fair Work Commission, in this instance, was tasked with examining and approving the proposed agreement under the Fair Work Act 2009. The primary concern was whether the agreement met the criteria for approval, including the fairness and efficiency of its provisions, and whether it adhered to the legal standards set by the Act.

The legal issues the court had to address included whether the agreement provided fair and efficient terms and conditions for the employees covered by it, and whether it contained any provisions that were not genuinely in the nature of an enterprise agreement. The court also needed to consider whether the agreement complied with the 'better off overall test', which requires that employees be at least as well off under the new agreement as they would be under the applicable award or previous enterprise agreement.

In reaching its decision, the Commission evaluated the agreement in light of the statutory requirements and found that the agreement was fair and efficient. The court determined that the agreement met the 'better off overall test' and was genuinely an enterprise agreement. The provisions of the agreement were considered to be within the scope of permissible terms for an enterprise agreement, and no unlawful content was found. Consequently, the Commission approved the agreement, finding it to be compliant with all relevant legislative standards.

The Fair Work Commission approved the proposed enterprise agreement, confirming that it met all necessary legal criteria for approval. The decision was based on the Commission's assessment that the agreement provided fair and efficient terms for the employees and satisfied the 'better off overall test'. The Commission's approval ensures that the agreement will now form the basis for the terms and conditions of employment for the workers covered by it.

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