DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2015/5776)

PAHM INVESTMENTS TRUST (THE TRUSTEE FOR) T/AS KONDOR ENGINEERING (“COMPANY”) AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 13 OCTOBER 2015

Application for approval of the PAHM INVESTMENTS TRUST (THE TRUSTEE FOR) T/As KONDOR ENGINEERING (“Company”) and the CFMEU Building and Construction Industry Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the PAHM INVESTMENTS TRUST (THE TRUSTEE FOR) T/As KONDOR ENGINEERING (“Company”) and the CFMEU Building and Construction Industry 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. 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 13 October 2015 and, in accordance with s.54, will operate from 20 October 2015. The nominal expiry date of the Agreement is 30 October 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for approval of the PAHM INVESTMENTS TRUST (THE TRUSTEE FOR) T/As KONDOR ENGINEERING (“Company”) and the CFMEU Building and Construction Industry Enterprise Agreement 2015. The dispute involved the legality and enforceability of the enterprise agreement under the Fair Work Act 2009.

The central legal issues before the court were whether the enterprise agreement met the necessary criteria for approval under the Fair Work Act, specifically regarding the process by which the agreement was made and whether it satisfied the "better off overall test." The court had to examine the procedural fairness of the agreement formation process and whether the terms of the agreement provided sufficient benefits to the employees to meet the "better off overall test."

The court determined that the agreement was procedurally valid as it was made in good faith and followed the necessary steps as required by the Fair Work Act. Additionally, the court found that the terms of the agreement were fair and met the "better off overall test," providing adequate benefits to the employees. Consequently, the court approved the enterprise agreement.

The final orders of the court were to approve the PAHM INVESTMENTS TRUST (THE TRUSTEE FOR) T/As KONDOR ENGINEERING and the CFMEU Building and Construction Industry Enterprise Agreement 2015, confirming its legality and enforceability under 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