DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3756)

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
COMMISSIONER ROE	MELBOURNE, 7 JULY 2016

Application for approval 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 an enterprise agreement known as 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 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 7 July 2016 and, in accordance with s.54, will operate from 14 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

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union sought approval for the MC Labour Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Labour Hire Industry Enterprise Agreement 2016-2018. The dispute involved the terms and conditions of employment within the labour hire industry, focusing on the proposed agreement's compliance with the Fair Work Act 2009 and its fairness to employees. The Commission was tasked with determining whether the agreement met the 'better off overall test' and whether it contained all mandated terms.

The central legal issue before the Commission was whether the proposed enterprise agreement provided for employees who were better off overall compared to their existing conditions, and whether it included all required terms under the Fair Work Act. Additionally, the Commission had to assess the fairness of the agreement, considering any adverse effects on employees and ensuring compliance with the law. The court considered the evidence provided by both parties, including submissions on economic impacts and the agreement's alignment with industry standards.

The Fair Work Commission concluded that the proposed agreement did indeed meet the 'better off overall test', as it provided for improved conditions and benefits for the majority of employees. The Commission found that the agreement contained all necessary terms and was fair, taking into account the economic benefits and the impact on employees. The Commission approved the agreement, emphasising the importance of the labour hire industry's role in the broader economy and the need to balance the interests of employers and employees.

The Commission's final order was the approval of the MC Labour Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Labour Hire Industry Enterprise Agreement 2016-2018, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission, and all parties were directed to comply with its terms. The decision underscored the Commission's commitment to ensuring fair and reasonable terms of employment while supporting industry growth and stability.

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