DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4760)

R AND K UNIT TRUST (THE TRUSTEE FOR) T/AS DB FARRELLS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016 - 2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 25 AUGUST 2016

Application for approval of the R and K Unit Trust (The Trustee for) T/As DB Farrells 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 R and K Unit Trust (The Trustee for) T/As DB Farrells 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 1 September 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union (CFME) sought approval for the R and K Unit Trust (the Trustee for) T/As DB Farrells Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The application was made under section 235 of the Fair Work Act 2009, with the union and employer submitting that the agreement met the "better off overall test" and should be approved. The dispute centred around whether the terms and conditions outlined in the proposed agreement were fair and reasonable, and whether they provided for a "better off overall" outcome for employees compared to the existing award.

The central legal issues before the Commission were whether the proposed enterprise agreement complied with the statutory requirements of the Fair Work Act and whether it met the "better off overall test". This test requires that, overall, employees would be better off under the agreement than if they remained under the relevant award. The Commission had to consider various aspects of the agreement, including wage rates, conditions of employment, and other terms and conditions, to determine if they provided a net benefit to the employees. Additionally, the Commission needed to assess if any terms unfairly disadvantaged any group of employees or contravened any provisions of the Fair Work Act.

After examining the submissions and evidence from both parties, the Commission determined that the proposed agreement met the statutory requirements and passed the "better off overall test". The Commission found that the agreement provided for fair and reasonable terms and conditions of employment and that employees would be better off overall under the agreement than if they remained under the relevant award. The Commission took into account the specific industry context, the bargaining power of the parties, and the impact of the agreement on the employees. The Commission concluded that the agreement was in the best interests of the employees and approved it under section 235 of the Fair Work Act.

The Fair Work Commission approved the R and K Unit Trust (the Trustee for) T/As DB Farrells Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The decision was based on the finding that the agreement met the "better off overall test" and provided fair and reasonable terms and conditions of employment for the employees. The approval of the agreement ensures that it will become the governing instrument for the employment of workers in the relevant industry, providing a clear framework for the relationship between the employer and employees.

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