DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4059)

NMK GROUP PTY LTD / CFMEU COLLECTIVE AGREEMENT 2016

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 11 AUGUST 2016

Application for approval of the NMK Group Pty Ltd / CFMEU Collective Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the NMK Group Pty Ltd / CFMEU Collective Agreement 2016 (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 11 August 2016 and, in accordance with s.54, will operate from 18 August 2016. The nominal expiry date of the Agreement is 31 October 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union sought approval of a collective agreement entered into with NMK Group Pty Ltd. The union argued that the agreement was necessary to protect employees' rights and interests in the face of a restructuring of NMK's operations, which threatened job security and other employment conditions. The central legal issue before the Commission was whether the agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was genuinely negotiated and if it was in the best interests of the employees covered by it.

The Commission examined the process of negotiation and the content of the agreement to ascertain its legitimacy and fairness. It considered whether the union had genuinely bargained with the employer and whether the terms of the agreement reflected a fair and reasonable compromise between the parties. The union provided evidence of the negotiation process and argued that the agreement was necessary to safeguard employees' rights during a period of significant change. The Commission also assessed the potential impact of the agreement on the employees' conditions of employment, including job security and other benefits.

After reviewing the evidence and arguments presented, the Commission found that the agreement had been genuinely negotiated and was in the best interests of the employees. The Commission concluded that the union had demonstrated a robust process of negotiation and that the terms of the agreement reflected a fair and reasonable compromise. The Commission approved the collective agreement, noting the necessity of protecting employees' rights during a period of significant restructuring. The union's application for approval was successful, and the agreement was registered, providing legal effect to the terms negotiated between the parties.

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