Construction, Forestry, Maritime, Mining and Energy Union

[2022] FWCA 1022

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union

(AG2022/706)

Vaughan Constructions Pty. Ltd./ CFMEU Collective Agreement 2019-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 24 MARCH 2022

Application for approval of the Vaughan Constructions Pty. Ltd./ CFMEU Collective Agreement 2019-2023

An application has been made for approval of an enterprise agreement known as the Vaughan Constructions 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 March 2022. The nominal expiry date of the Agreement is 31 December 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for approval of a collective agreement between Vaughan Constructions Pty Ltd and the CFMEU for the period 2019-2023. The application was heard in the Fair Work Commission. The primary dispute centred on whether the proposed agreement complied with the requirements of the Fair Work Act 2009, particularly concerning the fairness and reasonableness of its terms and conditions. The CFMEU argued that the agreement was fair and reasonable, while Vaughan Constructions Pty Ltd raised concerns about certain provisions that they believed could adversely impact their business operations.

The court was required to determine whether the proposed agreement met the statutory criteria for fairness and reasonableness. This included an assessment of whether the agreement was free from coercion, contained terms that provided for genuine bargaining, and did not have an adverse impact on the business operations of the employer. Additionally, the court examined whether the agreement contained terms that were consistent with the national minimum standards and protected employees' rights.

The Fair Work Commission found that the proposed agreement was fair and reasonable. The Commission emphasised the importance of the parties' genuine engagement in the bargaining process and noted that the agreement contained terms that were consistent with the national minimum standards. The Commission also considered the potential impact on business operations but found that the provisions in question were reasonable and necessary to ensure fair treatment of employees. Consequently, the application for approval of the collective agreement was approved.

The Fair Work Commission approved the Vaughan Constructions Pty Ltd/ CFMEU Collective Agreement 2019-2023, determining that it met the statutory requirements for fairness and reasonableness. This decision underscores the importance of genuine bargaining and the need for collective agreements to align with national minimum standards while also considering the legitimate interests of employers.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established