DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2015/7139)

PBS MANAGEMENT COMPANY PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2015-2019

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 4 JANUARY 2016

Application for approval of the PBS Management Company Pty Ltd and CFMEU Union Collective Agreement 2015-2019.

[1] An application has been made for approval of an enterprise agreement known as the PBS Management Company Pty Ltd and CFMEU Union Collective Agreement 2015-2019 (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] 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 4 January 2016 and, in accordance with s.54, will operate from 11 January 2016. The nominal expiry date of the Agreement is 2 July 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union brought an application for the approval of the PBS Management Company Pty Ltd and CFMEU Union Collective Agreement 2015-2019 before the Fair Work Commission. The PBS Management Company Pty Ltd is an employer of construction workers and the CFMEU is the union representing those workers. The dispute centred around whether the proposed agreement met the necessary legal criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the collective agreement was in compliance with the requirements of the Fair Work Act, particularly regarding the absence of provisions for the resolution of workplace disputes. The Commission needed to determine if the absence of a dispute resolution mechanism rendered the agreement non-compliant and, if so, whether it could be approved under the 'better off overall test'. This test requires that the employees be better off overall with the agreement than without it, even in the absence of a dispute resolution mechanism.

The Fair Work Commission found that while the agreement did not include a dispute resolution mechanism, the overall benefits to the employees under the agreement were significant and met the 'better off overall test'. The Commission approved the agreement on the basis that the benefits provided to the employees in terms of wages, conditions, and other entitlements were sufficiently advantageous to compensate for the lack of a formal dispute resolution process. This decision emphasised the Commission's focus on the tangible benefits to employees when evaluating the overall fairness of a collective agreement.

The Commission approved the PBS Management Company Pty Ltd and CFMEU Union Collective Agreement 2015-2019, subject to the specific conditions outlined in the decision. This approval allows the agreement to be implemented, providing the outlined benefits to the employees for the duration of the agreement.

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