Construction, Forestry, Maritime, Mining and Energy Union Summary

[2022] FWCA 3530

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/4187)

SEVCO COMMERCIAL PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS ARCHITECTURAL FEATURES AND FITTINGS ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 17 OCTOBER 2022

Application for approval of the SEVCO COMMERCIAL PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Architectural Features and Fittings Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the SEVCO COMMERCIAL PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Architectural Features and Fittings 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 24 October 2022. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

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CaseChat Overview and Summary

The case involved an application for the approval of a specific enterprise agreement between SEVCO COMMERCIAL PTY LTD and the CFMEU (Victorian Construction and General Division). The dispute was centred around the terms and conditions of the Subcontractors Architectural Features and Fittings Enterprise Agreement 2020-2023, which was to be approved by the Fair Work Commission. The court had to determine whether the agreement met the necessary legal standards and requirements set forth under the Fair Work Act 2009.

The primary legal issues revolved around whether the agreement was "better off overall" for the employees covered by it, as required by the Fair Work Act. This included assessing the agreement against various criteria such as wage rates, conditions of employment, and the overall impact on the employees' welfare. The court also needed to consider if the agreement complied with the procedural requirements under the Act, including proper bargaining and consultation processes.

In its reasoning, the court examined the specifics of the agreement and the submissions from both parties. It evaluated the evidence provided regarding the financial and non-financial benefits of the agreement to the employees. The court also considered whether the agreement was made in good faith and whether the bargaining process was fair and appropriate. After careful consideration of these factors, the court concluded that the agreement was indeed better off overall for the employees and complied with the procedural requirements. Consequently, the court approved the agreement.

The final order of the court was to approve the Subcontractors Architectural Features and Fittings Enterprise Agreement 2020-2023, confirming its compliance with the Fair Work Act. This decision was based on the court's determination that the agreement met the necessary criteria for approval, including being better off overall for the employees and adhering to the procedural requirements under the Act.

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