DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/5045)

VESTA STEEL PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER ROE	SYDNEY, 18 AUGUST 2016

Application for approval of the Vesta Steel 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 Vesta Steel 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[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 was approved on 18 August 2016 and, in accordance with s.54, will operate from 25 August 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 parties involved in this case are Vesta Steel Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The dispute revolves around the application for approval of the Enterprise Agreement 2016-2018. The matter was brought before the Fair Work Commission, which is the tribunal with jurisdiction to hear and decide upon such applications. The primary issue before the Commission was whether the enterprise agreement met the requirements of section 230 of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was made in good faith, contained provisions for the protection of employees' rights and entitlements, and was otherwise in compliance with the relevant statutory provisions.

The Commission examined the submissions made by both parties, as well as the provisions of the agreement itself. The Union argued that the agreement did not adequately protect employees' rights and entitlements, while Vesta Steel maintained that the agreement was fair and reasonable. The Commission considered the evidence and arguments presented by both parties and found that the agreement met the requirements of section 230 of the Act. The Commission noted that the agreement contained provisions for minimum wages, penalty rates, and other entitlements, as well as provisions for dispute resolution and other protections for employees. The Commission was satisfied that the agreement was made in good faith and was fair and reasonable.

In light of the findings, the Commission approved the Enterprise Agreement 2016-2018. The final orders of the Commission were that the agreement be approved as a registered agreement under the Fair Work Act, effective from 1 January 2017 until 31 December 2018. The Union's application for approval of the agreement was dismissed. The decision provides guidance to employers and unions on the requirements for an enterprise agreement to be approved by the Commission and highlights the importance of ensuring that such agreements meet the necessary statutory requirements.

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