DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/4518)

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

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 22 JULY 2016

Application for approval of the PATCHWORX 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 PATCHWORX 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 22 July 2016 and, in accordance with s.54, will operate from 29 July 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 the Patchworx Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) Enterprise Agreement 2016 - 2018. The application was heard by the Fair Work Commission. The primary dispute centred on whether the enterprise agreement met the requirements for approval under the Fair Work Act 2009, including whether it contained terms that were in the interests of the employees it covered.

The legal issues before the Commission were whether the agreement met the "better off overall test" and whether it contained appropriate terms and conditions that were necessary for the operation of the enterprise. The Commission had to consider if the proposed agreement provided a safety net of minimum terms and conditions and whether it was in the best interests of the employees, having regard to the benefits and detriments of the agreement. The parties also disputed the process through which the agreement was negotiated, questioning whether it was genuinely agreed upon by the majority of employees.

The Fair Work Commission found that the agreement met the better off overall test and contained necessary terms for the operation of the enterprise. The Commission noted that the agreement provided a safety net of minimum terms and conditions that were fair and beneficial to the employees. It also found that the negotiation process was genuine and that the majority of employees supported the agreement. As a result, the Commission approved the enterprise agreement. The parties were directed to implement the agreement and ensure compliance with its terms.

In summary, the Fair Work Commission approved the Patchworx Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) Enterprise Agreement 2016 - 2018. The Commission determined that the agreement met the necessary criteria under the Fair Work Act 2009 and was in the best interests of the employees. The parties were directed to implement the agreement and ensure compliance with its terms.

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