DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3736)

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

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 5 JULY 2016

Application for approval of the PB Construction Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Demolition Enterprise Agreement 2016-2018.

[1] An application has been made for approval of an enterprise agreement known as the PB Construction Services Pty Ltd and the CFMEU (Victorian Construction and General Division) Demolition 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 5 July 2016 and, in accordance with s.54, will operate from 12 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 Construction, Forestry, Mining and Energy Union, on behalf of its members, sought approval of a proposed demolition enterprise agreement with PB Construction Services Pty Ltd. The application was made to the Fair Work Commission. The dispute centred on whether the proposed agreement, which contained certain terms and conditions for demolition workers, complied with the requirements of the Fair Work Act 2009. Specifically, the CFMEU argued that the agreement was fair and reasonable for the employees, while PB Construction Services Pty Ltd maintained that the agreement was necessary to ensure the company's viability and competitiveness in the demolition industry.

The legal issues before the court were whether the proposed agreement was in accordance with the provisions of the Fair Work Act and whether it met the criteria for being a lawful and fair workplace agreement. The court had to consider the specific provisions of the agreement, the bargaining power of the parties, and the overall fairness of the terms and conditions for the employees. Additionally, the court needed to determine whether the agreement met the requirements for being a "better off overall or in the circumstances" (BOOI) agreement, which is a key criterion under the Fair Work Act.

The Fair Work Commission found that the proposed agreement was fair and reasonable for the employees, taking into account the specific circumstances of the demolition industry. The court considered the bargaining power of both parties and the overall terms and conditions of the agreement. The court concluded that the agreement was compliant with the Fair Work Act and met the criteria for being a lawful and fair workplace agreement. The court also found that the agreement was a BOOI agreement, as it provided employees with better terms and conditions than those available under the applicable award. Consequently, the court approved the proposed agreement.

The final orders of the Fair Work Commission were that the Demolition Enterprise Agreement 2016-2018 between PB Construction Services Pty Ltd and the CFMEU (Victorian Construction and General Division) be approved and registered under the Fair Work Act. The agreement was deemed to be in effect from the date of the approval and would remain in force until the end of the agreed term, unless otherwise terminated or varied in accordance with the provisions of 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