Construction, Forestry, Maritime, Mining and Energy Union Summary

[2022] FWCA 1675

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/1420)

QUALITY STEEL REINFORCEMENT PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 23 MAY 2022

Application for approval of the QUALITY STEEL REINFORCEMENT PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the QUALITY STEEL REINFORCEMENT PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing 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 30 May 2022. 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 matter involved an application for the approval of a specific enterprise agreement between Quality Steel Reinforcement Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023. The application was brought before the Fair Work Commission. The dispute arose from a disagreement over certain provisions of the proposed agreement, which was intended to govern the employment conditions of steelfixers within the specified period. Both parties sought approval of the agreement, but their negotiations led to an impasse, prompting the application to the Commission.

The primary legal issue before the Commission was whether the proposed enterprise agreement met the requirements of the Fair Work Act 2009, including the criteria for being a 'better off overall and in the round' agreement. This involved assessing whether the agreement provided employees with a sufficient balance of benefits and whether it complied with the mandatory provisions of the Fair Work Act. The Commission had to determine if the agreement was fair and reasonable, taking into account the economic circumstances of the parties and the broader labour market.

The Fair Work Commission found that the proposed agreement did indeed meet the necessary criteria. It was deemed to be a 'better off overall and in the round' agreement, as it provided employees with a fair balance of benefits, including improved wages and conditions, while also considering the economic viability of the employer. The Commission concluded that the agreement was fair and reasonable, and thus approved it in accordance with the provisions of the Fair Work Act. The decision emphasised the importance of achieving a balance between the interests of the employer and the employees, and the need for the agreement to reflect the current economic environment.

In light of the findings, the Fair Work Commission approved the Quality Steel Reinforcement Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Steelfixing Enterprise Agreement 2020-2023. The agreement was to be registered and would govern the employment conditions of the relevant employees for the specified period, subject to the terms and conditions outlined in the approved agreement. The decision provided clarity on the requirements for enterprise agreements and reinforced the Commission's role in ensuring that such agreements were fair and reasonable for all parties involved.

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