DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4940)

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

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 10 AUGUST 2016

Application for approval of the Studd Corp 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 Studd Corp 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 10 August 2016 and, in accordance with s.54, will operate from 17 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 matter before the court involved an application for the approval of the Studd Corp Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The dispute was heard in the Fair Work Commission, which is tasked with ensuring that workplace relations in Australia are governed by fair and effective agreements. The primary issue before the Commission was whether the proposed enterprise agreement met the criteria for approval as stipulated under the Fair Work Act 2009. This included assessing whether the agreement provided for fair and efficient terms and conditions for the employees, and whether it complied with the procedural requirements for such agreements.

The court was required to consider several legal issues, including whether the agreement had been made free from any improper influence or coercion. Additionally, the Commission had to determine if the agreement provided for a fair and efficient bargaining process, and whether it met the standard of being better off overall or at least no worse off (BOTO/NOWO) for the employees involved. The Commission also examined whether the agreement contained terms that were not reasonably required for the business operations of Studd Corp Pty Ltd and whether the agreement had been properly negotiated and agreed upon by both parties. These assessments were critical in determining whether the agreement could be approved under the Fair Work Act.

In its reasoning, the Commission found that the agreement had been negotiated in good faith and was free from any improper influence or coercion. The Commission was satisfied that the terms of the agreement were fair and efficient, providing for appropriate remuneration and conditions for the employees. Furthermore, the Commission determined that the agreement was better off overall or at least no worse off for the employees, meeting the statutory requirement for approval. The court noted that the agreement contained terms that were reasonably required for the business operations of Studd Corp Pty Ltd, and the procedural requirements for the making of the agreement were satisfied. Consequently, the Commission approved the enterprise agreement, finding it met all the necessary legal criteria.

The final orders of the Commission were that the Studd Corp Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) Enterprise Agreement 2016-2018 be approved under the Fair Work Act 2009. The agreement was to take effect from the date of the Commission's decision and would remain in force until the end of its term, unless otherwise terminated or varied in accordance with 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