DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/5156)

HUTCHINSON RIGGING AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 29 AUGUST 2016

Application for approval of the Hutchinson Rigging 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 Hutchinson Rigging 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 5 September 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved an application for approval of an enterprise agreement between Hutchinson Rigging and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The application was brought under the Fair Work Act 2009, specifically seeking the Fair Work Commission's approval of the Enterprise Agreement 2016-2018. The union and the employer had reached an agreement, which they believed was fair and reasonable, but required the formal approval of the Commission to have legal effect.

The central legal issue for the Commission was whether the agreement met the requirements of the Fair Work Act, particularly whether it was a "better off overall test" agreement. This test required the Commission to determine if the agreement was likely to result in employees being no worse off and at least some employees being better off overall, compared to the relevant national safety and wage system. The court also needed to consider whether the agreement complied with the relevant provisions of the Act, including provisions regarding the disclosure of information and the process for resolving disputes.

In its decision, the Commission examined the provisions of the agreement and the submissions made by both parties. It found that the agreement was likely to result in employees being no worse off overall and that some employees would indeed be better off overall, thus satisfying the better off overall test. The Commission also determined that the agreement complied with all relevant provisions of the Fair Work Act. Consequently, the Commission approved the Enterprise Agreement 2016-2018, finding it to be fair and reasonable.

The final orders of the Commission included the approval of the Enterprise Agreement 2016-2018 between Hutchinson Rigging and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The agreement was to be registered under the Fair Work Act, and the Commission determined that it would commence on the date of the decision and remain in force until the end of the specified period, unless terminated earlier in accordance with its terms or the Act.

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