DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3855)

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

Building, metal and civil construction industries
COMMISSIONER ROE	SYDNEY, 12 JULY 2016

Application for approval of the Mercury Industry 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 Mercury Industry 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 12 July 2016 and, in accordance with s.54, will operate from 19 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 case involved an application by the Construction, Forestry, Mining and Energy Union (CFMEU) and Mercury Industry Pty Ltd for the approval of their enterprise agreement for the period 2016-2018. The application was brought before the Fair Work Commission, Australia’s national workplace relations tribunal. The primary dispute centred around whether the proposed enterprise agreement complied with the necessary legal requirements, including provisions for fair and reasonable terms, and whether it adhered to the Fair Work Act 2009.

The legal issues the court needed to decide included whether the agreement met the criteria for "no disadvantage" and "good faith" negotiations, as mandated by the Fair Work Act. Additionally, the court had to consider whether the terms of the agreement provided for fair and reasonable terms of employment, taking into account the broader economic and social context. The court also examined whether the agreement contained provisions that were contrary to public policy or contravened any relevant legislation.

In rendering its decision, the Fair Work Commission carefully examined the provisions of the proposed agreement against the statutory requirements. The court found that the agreement largely met the necessary criteria for approval, including the "no disadvantage" test and the "good faith" requirement. The court concluded that the terms and conditions proposed in the agreement were fair and reasonable, taking into account the relevant economic factors and the parties' bargaining positions. The court also found that the agreement did not contravene any relevant legislation or public policy considerations. As a result, the court approved the enterprise agreement.

The Fair Work Commission's final orders included the approval of the Mercury Industry Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018, subject to certain minor modifications to address technical errors and ensure full compliance with the Fair Work 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