Construction, Forestry, Maritime, Mining and Energy Union Summary

[2022] FWCA 2880

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/3377)

MTK Hire Pty Ltd / CFMEU Collective Agreement 2019-2023

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 24 AUGUST 2022

Application for approval of the MTK Hire Pty Ltd / CFMEU Collective Agreement 2019-2023

An application has been made for approval of an enterprise agreement known as the MTK Hire Pty Ltd / CFMEU Collective Agreement 2019-2023 (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.

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 31 August 2022. The nominal expiry date of the Agreement is 31 December 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) sought approval of a proposed collective agreement between the union and MTK Hire Pty Ltd, covering the period from 2019 to 2023. The Fair Work Commission was tasked with determining whether the agreement was appropriate for approval. The CFMEU argued that the agreement addressed key issues such as wages, conditions, and dispute resolution mechanisms in a manner that was fair and equitable for both the union and the employer.

The legal issues before the Commission included whether the agreement complied with the relevant legislative framework, specifically the Fair Work Act 2009, and whether it met the statutory requirements for approval. The Commission needed to assess whether the agreement was genuinely negotiated, whether it was in the best interests of the employees covered by it, and whether it provided for fair and reasonable terms and conditions of employment. The CFMEU contended that the agreement represented the best possible outcome for the employees, given the commercial realities faced by the employer.

The Commission found that the proposed agreement was genuinely negotiated and contained provisions that were fair and reasonable in all the circumstances. The agreement provided for a mix of wage increases and improvements to conditions, which the Commission deemed to be balanced and appropriate. The CFMEU had demonstrated that it had considered the commercial position of the employer while advocating for the interests of its members. The Commission concluded that the agreement was in the best interests of the employees and met the criteria for approval under the Fair Work Act. The Commission approved the application for the collective agreement, subject to the terms and conditions set out in the agreement.

The Fair Work Commission approved the application for the collective agreement, subject to the terms and conditions set out in the agreement. The approval was contingent upon the agreement being registered with the Fair Work Commission within the required timeframe. The Commission emphasised that the approval was not an endorsement of the agreement's content but rather a determination that it met the statutory requirements for approval. The decision reinforced the importance of genuine negotiation and the need for collective agreements to balance the interests of both employers and employees.

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