Construction, Forestry, Maritime, Mining and Energy Union Summary

[2022] FWCA 1396

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/1190)

JS Steelfixing QLD Pty Ltd and CFMEU Union CollectiveAgreement 2020–2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 2 May 2022

Application for approval of the JS Steelfixing QLD Pty Ltd and CFMEU Union Collective Agreement 2020–2022

An application has been made for approval of a greenfields agreement known as the JS Steelfixing QLD Pty Ltd and CFMEU Union Collective Agreement 2020–2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a greenfields agreement. It has been made by the Construction, Forestry, Maritime, Mining and Energy Union.

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. In particular, I am satisfied that Construction, Forestry, Maritime, Mining and Energy Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the Construction, Forestry, Maritime, Mining and Energy Union and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54(1) of the Act, will operate from 9 May 2022. The nominal expiry date of the Agreement is 31 December 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of a collective agreement between the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and JS Steelfixing QLD Pty Ltd for the period 2020-2022. The CFMEU sought approval of the agreement under section 232 of the Fair Work Act 2009, as it contained provisions that were more favourable to employees than the applicable modern awards. The application was made in light of the parties' ongoing enterprise agreement negotiations, which had not been concluded within the prescribed timeframe.

The central legal issue for the Commission was whether the provisions of the proposed agreement were consistent with the objects of the Fair Work Act, specifically whether they promoted harmonious, productive and cooperative workplace relationships. Given the nature of the provisions, the Commission also had to consider whether they met the better-off-overall test, ensuring that the employees would be no worse off and at least some employees would be better off financially under the agreement compared to the applicable award provisions.

The Commission found that the proposed agreement provisions aligned with the Act's objectives by fostering cooperative workplace relationships and providing for mechanisms to resolve disputes. Furthermore, the Commission was satisfied that the agreement met the better-off-overall test, as it provided improved wages and conditions for employees without imposing unreasonable burdens on the employer. The Commission approved the collective agreement, noting the importance of facilitating fair and efficient workplace negotiations and agreements that benefit both employers and employees.

The final orders of the Commission were that the JS Steelfixing QLD Pty Ltd and CFMEU Union Collective Agreement 2020–2022 be approved under section 232 of the Fair Work Act 2009. The approval was subject to the agreement being registered by the Registrar of the Fair Work Commission within the specified timeframe. The decision emphasised the importance of maintaining a balanced approach in approving agreements that promote harmonious workplace relations and provide for fair and reasonable terms for both parties.

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