DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/5245)

MATTHEWS FACADE INSTALLATIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 30 AUGUST 2016

Application for approval of the Matthews Facade Installations Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018.

[1] An application has been made for approval of an enterprise agreement known as the Matthews Facade Installations Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018 (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 6 September 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

In the recent decision of Construction, Forestry, Mining and Energy Union, the Fair Work Commission was asked to approve an enterprise agreement between Matthews Facade Installations Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The union sought approval of the agreement, which outlined terms and conditions of employment for its members working for the company. The company, on the other hand, sought to ensure that the agreement met the necessary standards and did not unfairly disadvantage its business operations.

The primary legal issue before the Commission was whether the enterprise agreement complied with the relevant provisions of the Fair Work Act 2009. The Commission had to assess whether the agreement provided for minimum rates of pay, allowances, loadings and penalties, and whether it contained provisions that were contrary to public policy or not genuinely agreed upon by the parties. The union argued that the agreement was fair and represented the best outcomes for its members, while the company contended that certain provisions were overly restrictive and could potentially harm its business.

In delivering its decision, the Fair Work Commission found that the enterprise agreement largely complied with the requirements of the Fair Work Act. The Commission noted that the agreement provided for minimum rates of pay and other entitlements, and that the parties had genuinely agreed to the terms. However, the Commission did identify certain provisions that it considered to be contrary to public policy, and which it therefore disallowed. These included provisions that restricted the company's ability to subcontract work and to engage labour hire workers. The Commission found that these provisions were overly restrictive and could potentially harm the company's ability to operate its business effectively.

Ultimately, the Fair Work Commission approved the enterprise agreement with some modifications. The Commission disallowed certain provisions that it found to be contrary to public policy, but otherwise found the agreement to be fair and reasonable. The decision serves as a reminder to employers and unions that enterprise agreements must comply with the relevant legal requirements, and that the Fair Work Commission will not hesitate to strike down provisions that it considers to be unfair or contrary to public policy.

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