DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4774)

K CRANES PTY LTD AND THE CFMEU MOBILE CRANE HIRING INDUSTRY ENTERPRISE AGREEMENT 2016-2019

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 4 AUGUST 2016

Application for approval of the K Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the K Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019 (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 4 August 2016 and, in accordance with s.54, will operate from 11 August 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by the Construction, Forestry, Mining and Energy Union (CFMEU) to the Fair Work Commission for the approval of the K Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019. The application was contested by K Cranes Pty Ltd, and the matter was determined by the Fair Work Commission. The core dispute centred around the validity and approval of the enterprise agreement, specifically examining whether the agreement met the necessary criteria under the Fair Work Act 2009, including the requirement for majority support from the relevant employees.

The legal issues before the court encompassed whether the agreement had been genuinely negotiated, and if it satisfied the "better off overall test". The court also needed to determine whether the process followed in achieving the agreement complied with the statutory requirements, and whether the agreement provided for terms and conditions that were fair and reasonable. Furthermore, the court had to consider whether the agreement included appropriate mechanisms for the resolution of future disputes.

In examining these issues, the Fair Work Commission found that the agreement had been genuinely negotiated between the parties, and the process adhered to the statutory requirements. The Commission concluded that the agreement satisfied the better off overall test, as the majority of employees had voted in favour of the agreement, and the terms and conditions were fair and reasonable. The Commission noted that the agreement included adequate dispute resolution mechanisms, which were deemed sufficient for the purposes of the Act. Consequently, the Commission approved the enterprise agreement, confirming that it met all the necessary legal criteria.

The Fair Work Commission's final order was the approval of the K Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019. The decision was based on the findings that the agreement was genuinely negotiated, satisfied the better off overall test, complied with statutory requirements, and contained appropriate dispute resolution mechanisms.

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