DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3669)

RAINBOW ELEVATORS PTY LTD T/AS ELEVATOR PLACEMENT SERVICES 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 Rainbow Elevators Pty Ltd T/As Elevator Placement Services 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 Rainbow Elevators Pty Ltd T/As Elevator Placement Services 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

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CaseChat Overview and Summary

In the case of Construction, Forestry, Mining and Energy Union, the applicant sought approval for the Rainbow Elevators Pty Ltd T/As Elevator Placement Services and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The dispute centred on the terms and conditions of employment as outlined in the proposed enterprise agreement between the employer and the union, with a focus on whether the agreement met the statutory requirements under the Fair Work Act 2009.

The legal issues before the court involved determining whether the enterprise agreement complied with the procedural and substantive requirements of the Act. Specifically, the court needed to assess if the agreement had been fairly negotiated and whether it contained provisions that were in line with the national employment standards and other relevant legislation. The court also had to consider if the agreement adequately protected the rights of employees, particularly regarding redundancy payments.

The Fair Work Commission, in reviewing the agreement, found that it did not adequately protect employees' rights to redundancy payments upon termination of employment. The Commission held that the provisions of the agreement were not consistent with the national employment standards, which require a specific amount of redundancy pay based on the length of service. Consequently, the application for approval was rejected, and the agreement was not approved. The decision was based on the failure of the agreement to meet the statutory requirements for fair and reasonable terms and conditions of employment. The court emphasised the importance of ensuring that employees' entitlements were not compromised and that the agreement provided adequate protection in line with the national standards.

The final orders of the court were that the application for approval of the enterprise agreement was dismissed, and the agreement was not approved due to its failure to comply with the national employment standards concerning redundancy payments.

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