Construction, Forestry, Mining and Energy Union

Case [2016] FWCA 5535


[2016] FWCA 5535
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4935)

SCREED CRETE CONSTRUCTION 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 Screed Crete Construction 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 Screed Crete Construction 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

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Details
AGLC
Construction, Forestry, Mining and Energy Union [2016] FWCA 5535
Case
[2016] FWCA 5535
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved Screed Crete Construction Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The dispute centred on the approval of an enterprise agreement, specifically the Screed Crete Construction Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The union sought approval of the agreement under the Fair Work Act 2009, while the employer argued against certain provisions, primarily concerning the classification and remuneration of employees.

The legal issues at hand were whether the provisions of the proposed agreement met the criteria for approval under the Fair Work Act. Key points of contention included whether the agreement contained mandatory terms that unfairly disadvantaged the employer, whether it met the "better off overall test", and whether it complied with the good faith bargaining requirement. Additionally, the court needed to determine if the agreement adequately protected the rights of employees and the employer and whether it adhered to the principles of procedural fairness.

In delivering the decision, the Commission considered the statutory framework provided by the Fair Work Act, focusing on sections concerning the approval of enterprise agreements. The Commission found that the proposed agreement did not contain any unfair terms and met the better off overall test, as employees would benefit from various provisions, including wage increases and improved working conditions. Furthermore, the Commission concluded that the agreement was the product of good faith bargaining and was fair and reasonable in all its terms. Consequently, the Commission approved the Screed Crete Construction Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018, subject to certain minor modifications to address procedural fairness concerns.

The final orders of the Commission included the approval of the enterprise agreement with the aforementioned modifications, ensuring it complied with all statutory requirements under the Fair Work Act. The decision underscored the importance of balancing the rights and interests of both employees and employers in the context of enterprise bargaining.

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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