DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3667)

COMMANDO STORAGE SYSTEMS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 1 JULY 2016

Application for approval of the Commando Storage Systems 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 Commando Storage Systems 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 1 July 2016 and, in accordance with s.54, will operate from 8 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 (CFMEU) applied for approval of the Commando Storage Systems Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. Commando Storage Systems Pty Ltd is a small business engaged in the design, manufacture and installation of storage systems, while the CFMEU is a trade union representing workers in the construction, forestry, mining, and energy sectors. The dispute centred on whether the enterprise agreement complied with the requirements of the Fair Work Act 2009.

The central legal issue was whether the enterprise agreement met the criteria for approval as set out in section 231 of the Fair Work Act. Specifically, the Commission needed to determine if the agreement had been made in the course of genuine and genuine bargaining, and if it provided for the fair and reasonable terms and conditions of employment. The CFMEU argued that the agreement was the result of genuine bargaining and contained fair terms, while Commando Storage Systems Pty Ltd contended that the agreement did not meet the legal requirements.

The Commission found that the enterprise agreement was made in the course of genuine and genuine bargaining. It considered the process by which the agreement was negotiated, including the exchange of proposals and the willingness of both parties to compromise. The Commission was satisfied that the agreement provided for fair and reasonable terms and conditions of employment, including provisions for wages, leave, and dispute resolution. The Commission approved the enterprise agreement, noting the need for compliance with the Fair Work Act.

The final orders included the approval of the Commando Storage Systems Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018, effective from 1 July 2016 for a period of two years. The agreement was to be registered with the Fair Work Commission, and both parties were required to comply with its terms and conditions. The decision underscored the importance of genuine bargaining and the need for enterprise agreements to provide fair and reasonable terms and conditions of employment.

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