DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3774)

CAPITAL FUSION STUD WELDING PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016 - 2018

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 7 JULY 2016

Application for approval of the Capital Fusion Stud Welding 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 Capital Fusion Stud Welding 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 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

The case involved an application for the approval of an enterprise agreement between Capital Fusion Stud Welding Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The application was brought before the Fair Work Commission, which is tasked with regulating and approving such agreements under the Fair Work Act 2009. The union and the employer sought the Commission's approval of the terms and conditions outlined in their proposed enterprise agreement, which was to govern their relationship for a period of two years.

The primary legal issues before the Commission were whether the agreement met the statutory requirements for approval, particularly under section 230 of the Fair Work Act. This included assessing whether the agreement provided for the "essential" terms of employment and whether it was "fair and portable." The Commission also needed to consider whether the agreement was genuinely negotiated and whether it met the "better off overall test" (BOOT), ensuring that employees would not be worse off financially.

The Commission found that the agreement met the statutory requirements for approval. It concluded that the agreement provided for the essential terms of employment, was fairly negotiated, and met the BOOT. The Commission noted the parties' commitment to fair and reasonable terms and conditions, which aligned with the objectives of the Fair Work Act. Additionally, the agreement contained provisions that were considered beneficial to the employees, such as provisions for overtime rates and shift penalties. Given these findings, the Commission approved the enterprise agreement, finding it to be fair and portable.

The Fair Work Commission approved the Capital Fusion Stud Welding Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018, determining that it met all the statutory requirements for approval.

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