DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3725)

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

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

Application for approval of the Suretec Australia 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 Suretec Australia 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 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 case involved an application for the approval of an enterprise agreement between Suretec Australia Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The application was heard in the Fair Work Commission, Australia's independent statutory body responsible for regulating workplace relations and ensuring fair pay and conditions. The union and the employer sought to have their enterprise agreement approved, which would then be registered and binding on the parties involved.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement met the requirements for "genuine agreement" and "better off overall" tests, which are mandatory criteria for the approval of enterprise agreements. The "better off overall" test requires that employees under the agreement be no worse off financially than if they were covered by the applicable award or registered agreement.

The Fair Work Commission found that the proposed enterprise agreement met the requirements for genuine agreement as it was negotiated in good faith between the parties. The Commission also determined that the agreement satisfied the "better off overall" test, as employees would receive a financial benefit under the agreement. The Commission took into account the overall package of benefits provided by the agreement, including wages, leave entitlements, and other conditions, and concluded that employees would be better off overall as a result of the agreement.

As a result of this determination, the Fair Work Commission approved and registered the Suretec Australia Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The approved agreement is now legally binding on the parties and will govern the employment conditions of the employees covered by the agreement.

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