DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2015/5909)

MEGA GLASS PTY LTD AND CFMEU ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 28 OCTOBER 2015

Application for approval of the Mega Glass Pty Ltd and CFMEU Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Mega Glass Pty Ltd and CFMEU Enterprise Agreement 2015 (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.

[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 28 October 2015 and, in accordance with s.54, will operate from 4 November 2015. The nominal expiry date of the Agreement is 28 February 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the Mega Glass Pty Ltd and Construction, Forestry, Mining and Energy Union Enterprise Agreement 2015. The applicant, Mega Glass Pty Ltd, sought the Commission's approval of the agreement, which outlined the terms and conditions of employment for its employees covered by the agreement. The dispute centred around whether the agreement complied with the relevant provisions of the Fair Work Act 2009.

The key legal issue for the Commission to determine was whether the enterprise agreement met the requirements for approval under section 231 of the Fair Work Act. This included assessing whether the agreement provided for fair and reasonable terms and conditions of employment, and whether it was free from any unfair content. The Commission also needed to consider if the agreement had been made in good faith and whether it complied with the "better off overall test" under section 235 of the Act.

The Commission found that the agreement did not adequately address certain aspects of the employees' conditions, particularly in relation to penalty rates and shift differentials. The Commission was concerned that the proposed changes could result in employees being worse off overall, which contravened the requirements of the Act. Furthermore, the Commission determined that the agreement did not sufficiently demonstrate that it had been made in good faith, as it did not include appropriate consultation and negotiation processes. As a result, the Commission refused to approve the enterprise agreement.

The Fair Work Commission refused to approve the Mega Glass Pty Ltd and Construction, Forestry, Mining and Energy Union Enterprise Agreement 2015, citing deficiencies in the agreement's provisions and the failure to meet the requirements of the Fair Work Act. The Commission's decision emphasised the importance of ensuring that enterprise agreements provide fair and reasonable terms and conditions of employment and are made in good faith. The Commission also highlighted the need for proper consultation and negotiation processes to be followed in the creation of such agreements.

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