DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/3125)

MHG GLASS PTY LTD ENTERPRISE AGREEMENT 1ST JAN 2016-31ST DEC 2018

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 26 MAY 2016

Application for approval of the MHG Glass Pty Ltd Enterprise Agreement 1st Jan 2016-31st Dec 2018.

[1] An application has been made for approval of an enterprise agreement known as the MHG Glass Pty Ltd Enterprise Agreement 1st Jan 2016-31st Dec 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Mining and Energy Union. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 June 2016. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Appendix A

CaseChat Overview and Summary

The matter before the Fair Work Commission concerned an application for the approval of the MHG Glass Pty Ltd Enterprise Agreement for the period 1st January 2016 to 31st December 2018. The applicant, Construction, Forestry, Mining and Energy Union (CFMEU), sought approval of the agreement which had been negotiated with the employer, MHG Glass Pty Ltd. The dispute centred on the terms of the agreement and whether they met the criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the terms of the enterprise agreement complied with the statutory requirements of the Fair Work Act. Specifically, the Commission needed to determine if the agreement contained the "Better Off Overall Test" (BOOT) and whether it had been negotiated in "good faith". The BOOT requires that employees be at least as well off financially under the new agreement as they would be under the previous award or agreement. The "good faith" requirement ensures that negotiations were conducted fairly and without coercion.

The Commission found that the agreement met the BOOT as employees would be at least as well off financially under the new agreement. The agreement included provisions for pay rates, conditions, and other entitlements that were at least as favourable as those provided under the previous arrangements. The Commission was satisfied that the negotiation process had been conducted in good faith, with both parties engaging in a genuine attempt to reach an agreement. As such, the application for approval was successful.

The Fair Work Commission approved the MHG Glass Pty Ltd Enterprise Agreement for the period specified. The agreement was deemed to comply with the requirements of the Fair Work Act, including the BOOT and the "good faith" negotiation requirement. This decision ensures that the terms of the agreement are legally binding and enforceable for the duration of its operation.

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