DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4568)

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

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 26 JULY 2016

Application for approval of the MPA Construction 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 the MPA Construction 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.

[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 2 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 involved an application for approval of an enterprise agreement between MPA Construction Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) for the period 2016-2018. The dispute came before the Fair Work Commission, the administrative body responsible for overseeing the approval process of such agreements under the Fair Work Act 2009. The union and the employer sought the Commission’s endorsement of their negotiated terms, which included provisions on wages, conditions, and dispute resolution mechanisms.

The legal issues central to the case centred on whether the agreement met the statutory requirements for approval under the Fair Work Act. Key points of contention included whether the agreement provided for a genuine bargain between the parties, and whether it complied with the 'better off overall test' (BOOT) which mandates that employees should not be worse off financially under the new terms compared to their previous conditions. Additionally, the Commission had to ensure that the agreement did not undermine the safety and health provisions of the Occupational Health and Safety legislation.

In its decision, the Commission examined the submissions and evidence presented by both parties. The Commission found that the agreement satisfied the requirements of the Act, noting that it contained provisions that were fair and reasonable, and met the BOOT. The Commission also considered the economic context and the need for the agreement to support productivity and competitiveness. It was satisfied that the agreement did not compromise occupational health and safety standards. Consequently, the Commission approved the enterprise agreement, recognising its potential to benefit both the employer and employees by providing a balanced and fair set of terms.

The final orders of the Commission included the formal approval of the MPA Construction Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018, which was to take effect from the date of the decision. This approval ensured that the terms and conditions set out in the agreement would be legally binding on the parties involved.

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