DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4763)

ZULIN CONSTRUCTION PTY LTD T/AS ZULIN FORMWORK AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	SYDNEY, 4 AUGUST 2016

Application for approval of the Zulin Construction Pty Ltd T/As Zulin Formwork 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 Zulin Construction Pty Ltd T/As Zulin Formwork 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.

[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 is approved and, in accordance with s.54 of the Act, will operate from 11 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 applicant, Zulin Construction Pty Ltd trading as Zulin Formwork, applied to the Fair Work Commission for approval of an enterprise agreement with the Construction, Forestry, Mining and Energy Union (CFMEU). The CFMEU (Victorian Construction and General Division) was also a party to the application. The primary dispute centred around whether the proposed enterprise agreement complied with the Fair Work Act 2009, particularly in relation to the terms and conditions of employment for the workers covered by the agreement.

The legal issues that the Fair Work Commission was required to determine included whether the proposed agreement met the statutory requirements for an enterprise agreement, including the "better off overall test" under section 173 of the Fair Work Act. This test ensures that employees are not worse off financially by being subject to the terms of the enterprise agreement compared to their existing awards or agreements. Additionally, the Commission needed to assess whether the agreement contained all the prescribed terms and conditions, and whether the process for the agreement's formation was procedurally fair.

In delivering its decision, the Fair Work Commission found that the proposed enterprise agreement satisfied the statutory requirements and passed the better off overall test. The Commission considered the evidence presented on the financial implications for the employees and concluded that they would not be worse off under the new agreement. Furthermore, the agreement included all prescribed terms and conditions, and the process for its formation was deemed procedurally fair. Consequently, the Commission approved the enterprise agreement, finding it to be compliant with the Fair Work Act.

The Fair Work Commission's final order was the approval of the Zulin Construction Pty Ltd T/As Zulin Formwork and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The agreement is now legally binding between the parties and will govern the terms and conditions of employment for the workers 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