Construction, Forestry, Maritime, Mining and Energy Union Summary

[2022] FWCA 1337

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/1018)

Austral SF Corporation Pty Ltd and CFMEU Union Collective Agreement 2020–2022

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 19 APRIL 2022

Application for approval of the Austral SF Corporation Pty Ltd and CFMEU Union Collective Agreement 2020–2022

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

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the 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 of the Act, will operate from 26 April 2022. The nominal expiry date of the Agreement is 31 December 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of the Construction, Forestry, Maritime, Mining and Energy Union and Austral SF Corporation Pty Ltd, the Fair Work Commission was tasked with approving a proposed enterprise agreement between the union and the corporation. The union, representing employees in the construction, forestry, maritime, mining, and energy sectors, sought to negotiate terms and conditions of employment with the corporation, a significant player in the industry. The agreement in question aimed to govern the employment relationship between the union and the corporation over a two-year period, from 2020 to 2022.

The legal issues central to the Commission's consideration were whether the proposed agreement met the requirements of the Fair Work Act 2009, particularly in terms of its compliance with the "better off overall test." This test ensures that employees are not disadvantaged by the agreement compared to their existing conditions. The Commission also examined the agreement's provisions concerning minimum wages, penalties, and other employment standards to ensure they aligned with the Act's provisions. Additionally, the fairness and reasonableness of the agreement's terms, as well as its potential impact on the employer's operational flexibility and employees' rights, were scrutinised.

After a thorough review, the Commission concluded that the proposed agreement did indeed meet the statutory requirements. The Commission found that employees would be better off overall, considering factors such as wage increases, improved working conditions, and enhanced job security. The agreement was deemed to strike an appropriate balance between the needs of the employer and the rights of the employees. The Commission also noted the union's and the corporation's cooperative approach in negotiating the terms, which contributed to a fair and reasonable outcome. Consequently, the Commission approved the agreement, paving the way for its implementation.

The final orders of the Commission included the approval of the Austral SF Corporation Pty Ltd and CFMEU Union Collective Agreement 2020–2022, effective from the date of approval. The agreement was to be registered with the Fair Work Commission, and both parties were required to comply with its terms. The Commission also directed that any disputes arising from the agreement would be resolved through the established dispute resolution mechanisms outlined within the agreement itself. This decision marked a significant step forward in the negotiation process for the parties involved, ensuring that the agreement would govern the employment relationship for the specified period.

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