DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4887)

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

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 9 AUGUST 2016

Application for approval of the Idaho Way 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 Idaho Way 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 9 August 2016 and, in accordance with s.54, will operate from 16 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

In the matter of the application for approval of the Idaho Way Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018, the Fair Work Commission was asked to consider whether the enterprise agreement should be approved. The applicant, Idaho Way Pty Ltd, was a civil construction contractor, while the respondent, the Construction, Forestry, Mining and Energy Union (CFMEU), represented the employees of the company. The dispute centred on the terms and conditions of employment set out in the agreement, with the CFMEU arguing that the agreement was fair and reasonable, while Idaho Way Pty Ltd contended that certain provisions were not in line with industry standards and were overly restrictive.

The legal issues before the Commission were whether the agreement complied with the provisions of the Fair Work Act 2009 and whether it met the criteria for being a "better off overall test" (BOOT) agreement. Specifically, the Commission had to consider whether the agreement provided for fair and reasonable terms and conditions of employment, including minimum wages, penalty rates, leave entitlements, and other benefits. Additionally, the Commission needed to determine whether the agreement was likely to result in improved productivity and efficiency, while ensuring that the interests of both parties were balanced.

In its decision, the Commission found that the agreement was largely compliant with the requirements of the Fair Work Act 2009. The Commission noted that the agreement contained provisions for minimum wages and penalty rates that were in line with industry standards, as well as provisions for leave entitlements and other benefits that were fair and reasonable. The Commission also found that the agreement contained provisions that were likely to result in improved productivity and efficiency, while balancing the interests of both parties. However, the Commission made some minor amendments to the agreement to address certain concerns raised by Idaho Way Pty Ltd.

As a result, the Commission approved the enterprise agreement with the minor amendments. The parties were directed to give each other 10 days' written notice of any proposed changes to the agreement, and any disputes arising out of or in connection with the agreement were to be referred to the Commission for resolution. The approval of the agreement ensures that the terms and conditions of employment for the employees of Idaho Way Pty Ltd are fair and reasonable, while also promoting improved productivity and efficiency in the workplace.

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