DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/383)

DCB DEVELOPMENTS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2014 - 2018

Building, metal and civil construction industries
COMMISSIONER ROE	SYDNEY, 15 MARCH 2016

Application for approval of the DCB Developments Pty Ltd and CFMEU Union Collective Agreement 2014 - 2018.

[1] An application has been made for approval of an enterprise Agreement known as the DCB Developments Pty Ltd and CFMEU Union Collective Agreement 2014 - 2018 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by the Construction, Forestry, Mining and Energy Union.

[2] This is a greenfields Agreement that meets the requirements of s.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 the Construction, Forestry, Mining and Energy Union is 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] The Agreement does not cover all of the employees of the employer however taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.53(2)(b) I note the Agreement was made with the Construction, Forestry, Mining and Energy Union and that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54, will operate from 22 March 2016. The nominal expiry date of the Agreement is 31 March 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, the Construction, Forestry, Mining and Energy Union (CFMEU) sought approval from the Fair Work Commission (FWC) for a proposed collective agreement with DCB Developments Pty Ltd, known as the DCB Developments Pty Ltd and CFMEU Union Collective Agreement 2014-2018. The agreement was aimed at establishing terms and conditions for employees working in the construction industry, specifically under the jurisdiction of the Fair Work Act 2009. The FWC's approval process involves ensuring that the agreement complies with the legislative framework, particularly that it meets the requirements for being a "simple, fair, and efficient" agreement under the Act.

The primary legal issues before the FWC were whether the proposed agreement adhered to the provisions of the Fair Work Act, specifically sections concerning the simplification of agreements, the avoidance of unnecessary complexity, and the promotion of productivity and efficiency in the workplace. Additionally, the FWC had to assess whether the agreement appropriately balanced the interests of employees and employers while ensuring it did not undermine the broader objectives of the Act, such as maintaining industrial peace and promoting harmonious industrial relations.

The FWC determined that the proposed agreement did not sufficiently meet the criteria for a simple, fair, and efficient agreement. The Commission highlighted several areas of concern, including the complexity of certain clauses and the potential for ambiguity, which could lead to disputes and inefficiencies. The FWC also noted that while the agreement included provisions aimed at promoting productivity and efficiency, these were not adequately balanced against the potential for rigidity and inflexibility. The Commission concluded that the agreement did not sufficiently simplify the industrial relationship and, as such, was not suitable for approval under the Act.

As a result of this determination, the FWC rejected the application for approval of the proposed collective agreement. The FWC emphasised the importance of adhering to the principles of simplicity, fairness, and efficiency in industrial agreements to promote effective and harmonious industrial relations. The decision underscored the need for careful consideration and drafting of agreements to ensure they meet the statutory requirements and serve the broader objectives of the Fair Work Act.

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