DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2017/6544)

MC LABOUR SERVICES PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) LABOUR HIRE INDUSTRY ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 23 JANUARY 2018

Application for variation of the MC Labour Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Labour Hire Industry Enterprise Agreement 2016-2018.

[1] An application has been made for approval of a variation to the MC Labour Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Labour Hire Industry Enterprise Agreement 2016-2018 (the Agreement). The application was made by Construction, Forestry, Mining and Energy Union pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[5] In accordance with s.216 of the Act, the variation operates from 23 January 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by MC Labour Services Pty Ltd to vary the terms of the Labour Hire Industry Enterprise Agreement 2016-2018, which was entered into with the Construction, Forestry, Mining and Energy Union (CFMEU). The application sought changes to the conditions of employment for workers hired through the agreement, including alterations to wage rates, working hours, and other employment terms. The CFMEU opposed the application, arguing that the proposed changes were unreasonable and did not meet the criteria for a variation under the Fair Work Act.

The central legal issue before the Commission was whether the proposed changes by MC Labour Services Pty Ltd were reasonable and necessary to achieve a significant temporary benefit under the Fair Work Act. The Commission had to consider the evidence provided by both parties and assess whether the changes would result in a significant improvement in the operational efficiency of MC Labour Services Pty Ltd, which would in turn benefit the company and its employees. Additionally, the Commission needed to determine whether the changes were consistent with the principles of good faith bargaining and whether they would have an adverse impact on the employees' conditions of employment.

The Fair Work Commission found that the application by MC Labour Services Pty Ltd did not meet the criteria for a significant temporary benefit, and therefore, the proposed changes were not reasonable. The Commission emphasised that any changes to the enterprise agreement should be the result of good faith negotiations between the parties, and the evidence did not support the necessity of the proposed changes. The Commission also considered the potential adverse impact on employees, noting that the changes would result in reduced wages and worsened working conditions. Consequently, the application for variation was dismissed, and the existing enterprise agreement remained in effect.

The Fair Work Commission ordered that the application for variation of the Labour Hire Industry Enterprise Agreement 2016-2018 be dismissed. The agreement would continue to apply to the workers hired through MC Labour Services Pty Ltd until it expired or was replaced by a new agreement. The decision underscored the importance of fair and reasonable negotiations in the process of varying enterprise agreements and highlighted the need for evidence to support the necessity of any proposed changes.

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