DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3708)

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

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 4 JULY 2016

Application for approval of The Racking Company 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 Racking Company 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 4 July 2016 and, in accordance with s.54, will operate from 11 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 parties in this case were The Racking Company Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The dispute was about the approval of the Enterprise Agreement between these parties for the period 2016-2018. The case was heard in the Fair Work Commission. The central legal issues the court had to decide were whether the agreement met the criteria set out in the Fair Work Act 2009 for approval, specifically if it provided for fair and reasonable terms and conditions, and if it complied with the "better off overall test".

The Fair Work Commission considered whether the agreement provided for fair and reasonable terms and conditions, taking into account the economic and employment circumstances of the parties. The Commission also assessed if the agreement complied with the "better off overall test", which required that employees would be no worse off and at least some employees would be better off under the agreement compared to the applicable award or general industrial instrument. The court examined the submissions from both parties and the evidence provided to determine if the agreement met these criteria.

In its decision, the Fair Work Commission found that the agreement met the necessary criteria for approval. It concluded that the agreement provided for fair and reasonable terms and conditions and that it complied with the "better off overall test". The Commission considered the economic context and the submissions from both parties, ultimately deciding that the agreement was in the best interests of the employees and the employer. The court approved the Enterprise Agreement, allowing it to come into effect.

The final orders of the Fair Work Commission were that the Enterprise Agreement between The Racking Company Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) for the period 2016-2018 was approved and could come into effect. The agreement was deemed to provide for fair and reasonable terms and conditions and to comply with the "better off overall test" as required by the Fair Work Act 2009.

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