DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4671)

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

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 29 JULY 2016

Application for approval of the Ardon Constructions 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 Ardon Constructions 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 29 July 2016 and, in accordance with s.54, will operate from 5 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 case before the Fair Work Commission involved an application for approval of the Enterprise Agreement between Ardon Constructions Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) for the period 2016 to 2018. The application was brought by the union, which sought to have the agreement recognised as meeting the requirements of the Fair Work Act 2009. The employer, Ardon Constructions, did not oppose the application but raised concerns about certain provisions of the agreement.

The key legal issue the Commission had to determine was whether the Enterprise Agreement complied with the provisions of the Fair Work Act, particularly in relation to the mandatory terms and conditions that must be included in such agreements. The Commission had to assess whether the agreement provided for minimum rates of pay, leave entitlements, and other mandatory terms, and whether any provisions in the agreement that went beyond the minimum standards were fair and reasonable.

In its decision, the Commission found that the Enterprise Agreement did meet the requirements of the Fair Work Act. The Commission noted that the agreement included all the mandatory terms and conditions required by the Act and provided for minimum rates of pay, leave entitlements, and other essential conditions. Furthermore, the Commission considered that the provisions that went beyond the minimum standards were fair and reasonable, taking into account the specific circumstances of the industry and the bargaining positions of the parties. The Commission approved the Enterprise Agreement, thereby resolving the dispute in favour of the union.

The Commission ordered that the Enterprise Agreement be approved as meeting the requirements of the Fair Work Act and directed that it be registered with the Fair Work Commission. The agreement was to be in effect from the date of the Commission's decision and would remain in force until the end of the specified period, unless terminated earlier in accordance with its terms or the provisions of the Act.

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