DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2018/415)

ADZ LIFT CRANE HIRE PTY LTD AND THE CFMEU MOBILE CRANE HIRING INDUSTRY ENTERPRISE AGREEMENT 2016-2019

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 23 FEBRUARY 2018

Application for approval of the ADZ Lift Crane Hire Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the ADZ Lift Crane Hire Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Construction, Forestry, Mining and Energy Union. The Agreement is a single enterprise agreement.

[2] 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.

[3] The Construction, Forestry, 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 March 2018. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for approval of the ADZ Lift Crane Hire Pty Ltd and the Construction, Forestry, Mining and Energy Union (CFMEU) Mobile Crane Hiring Industry Enterprise Agreement 2016-2019. The CFMEU sought approval of the agreement under section 230 of the Fair Work Act 2009, as a low paid industry agreement. The company, ADZ Lift Crane Hire Pty Ltd, did not oppose the application for approval.

The central legal issue before the Commission was whether the agreement met the requirements of section 230 of the Fair Work Act. Specifically, the Commission needed to determine if the agreement was a "low paid industry agreement" as defined in the Act, which requires that at least 80% of the employees covered by the agreement must be earning the national minimum wage or a wage below the relevant award rate. Additionally, the Commission considered whether the agreement provided for terms and conditions that met the "better off overall test" as per section 230(3) of the Act.

In assessing the application, the Commission found that the agreement did indeed cover a majority of employees earning below the relevant award rate, thus satisfying the low paid industry criteria. Furthermore, the Commission determined that the agreement's terms and conditions were better off overall for the employees, as they provided improved pay and conditions compared to the applicable awards. Consequently, the Commission approved the agreement under section 230 of the Fair Work Act.

The Fair Work Commission approved the ADZ Lift Crane Hire Pty Ltd and CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019, deeming it a low paid industry agreement and satisfying the better off overall test. This decision ensures that the employees covered by the agreement receive improved terms and conditions of employment.

Construction, Forestry, Mining and Energy Union

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established