Construction, Forestry, Mining and Energy Union

Case [2016] FWCA 5714


[2016] FWCA 5714
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/5010)

VERTICAL ACCESS SOLUTIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016 -2018

Building, metal and civil construction industries

COMMISSIONER ROE

SYDNEY, 15 AUGUST 2016

Application for approval of the VERTICAL ACCESS SOLUTIONS 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 VERTICAL ACCESS SOLUTIONS 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 15 August 2016 and, in accordance with s.54, will operate from 22 August 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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Details
AGLC
Construction, Forestry, Mining and Energy Union [2016] FWCA 5714
Case
[2016] FWCA 5714
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union (CFMEU) applied for the approval of a proposed enterprise agreement with Vertical Access Solutions Pty Ltd (VAS). The agreement, which covered the period from 2016 to 2018, sought to establish terms and conditions of employment for employees within the VAS organisation. The application came before the Commission, which had to determine whether the agreement met the legal standards for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement complied with the formal and substantive requirements outlined in the Fair Work Act. The Commission had to consider whether the agreement had been made in good faith and whether it contained the minimum terms and conditions as stipulated by the Act. Additionally, the Commission needed to assess whether the agreement unfairly disadvantaged employees or if it provided for proper consultation and notification processes. The Commission also examined the extent to which the agreement complied with the relevant provisions of the National Employment Standards.

Upon review, the Commission found that the proposed agreement did not meet the legal standards for approval. The agreement failed to provide for the minimum terms and conditions required by the Fair Work Act, and it did not offer fair and reasonable remuneration for employees. Additionally, the agreement did not adequately address the provisions for consultation and notification, which are essential components of a valid enterprise agreement. Consequently, the Commission did not approve the agreement, citing its failure to comply with the statutory requirements.

In its decision, the Commission outlined the specific areas where the agreement fell short of the necessary legal standards. The Commission also provided guidance to the parties on the necessary steps to amend the agreement to meet the requirements of the Fair Work Act. The Commission's decision was final, and the agreement was not approved. The Commission's reasoning and findings were communicated to both parties, allowing them to understand the legal issues that needed to be addressed to achieve a compliant agreement in the future.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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