DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4891)

SOUTH MELBOURNE BUILDING SERVICES 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 South Melbourne Building Services 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 South Melbourne Building Services 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

The matter before the court involved an application for approval of an enterprise agreement between South Melbourne Building Services Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The application was brought before the Fair Work Commission, which has the authority to approve such agreements under the Fair Work Act 2009. The union and the employer had reached an agreement on terms and conditions of employment, and sought the Commission’s formal endorsement.

The legal issues before the Commission were whether the proposed agreement complied with the provisions of the Fair Work Act and whether it met the “better off overall test.” This test requires that, on balance, the agreement must provide employees with benefits that are at least as good as the benefits they would receive under the relevant award or modern award. Additionally, the Commission needed to determine whether the agreement was made in good faith and whether it included appropriate processes for the resolution of future disputes.

In assessing the application, the Commission considered the terms of the agreement and the evidence provided by both parties. The Commission found that the agreement did comply with the statutory requirements and that it satisfied the better off overall test. The Commission was satisfied that the agreement was made in good faith and included provisions for the resolution of future disputes, which were deemed to be appropriate. Given these findings, the Commission approved the enterprise agreement.

The Fair Work Commission approved the South Melbourne Building Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018, determining that it met the necessary legal standards and provided fair terms and conditions of employment for the employees covered by the agreement.

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