DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/1311)

FIRST CHOICE RIGGING & CONSTRUCTION (AUSTRALIA) PTY LTD/CFMEU GREENFIELDS BUILDERS AGREEMENT 2016-2017

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 27 MAY 2016

Application for approval of the First Choice Rigging & Construction (Australia) Pty Ltd/CFMEU Greenfields Builders Agreement 2016-2017.

[1] An application has been made for approval of a greenfields agreement known as the First Choice Rigging & Construction (Australia) Pty Ltd/CFMEU Greenfields Builders Agreement 2016-2017 (Agreement). The application was made by Construction, Forestry, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that Construction, Forestry, Mining and Energy Union are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with Construction, Forestry, Mining and Energy Union and that the Agreement covers these organisations.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 June 2016. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case, the Construction, Forestry, Mining and Energy Union applied for the approval of an enterprise agreement with First Choice Rigging & Construction (Australia) Pty Ltd. This matter was heard in the Fair Work Commission. The dispute revolved around the terms and conditions of employment outlined in the proposed agreement, which was intended to govern the relationship between the union and the company for the period 2016-2017.

The primary legal issue before the court was whether the agreement met the necessary requirements under the Fair Work Act 2009 to be approved and registered. Specifically, the court had to consider whether the agreement satisfied the "better off overall test" and if it contained all the mandated minimum terms and conditions. The court was also required to determine if the agreement was made in good faith and if the union had followed the appropriate procedural steps in negotiating the agreement.

In its decision, the Fair Work Commission found that the proposed agreement did indeed meet the statutory requirements. The commission confirmed that the agreement passed the better off overall test, meaning that the employees were better off financially and in terms of other conditions compared to their previous arrangements. Furthermore, the commission found that the agreement included all the mandated minimum terms and conditions and that it had been negotiated in good faith. The union had also adhered to the necessary procedural steps in reaching the agreement. Consequently, the court approved and registered the First Choice Rigging & Construction (Australia) Pty Ltd/CFMEU Greenfields Builders Agreement 2016-2017.

The final orders of the court mandated the registration of the agreement, thereby making it a legally binding contract between the parties. The agreement would now govern the employment terms and conditions of the workers for the specified period, ensuring compliance with 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