DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2015/5148)

T&M BUILDING CONTRACTORS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2015 - 2019

Building, metal and civil construction industries
COMMISSIONER ROE	SYDNEY, 8 OCTOBER 2015

Application for approval of the T&M Building Contractors Pty Ltd and CFMEU Union Collective Agreement 2015 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the T&M Building Contractors 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 8 October 2015 and, in accordance with s.54, will operate from 15 October 2015. 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 matter involved an application by the Construction, Forestry, Mining and Energy Union (CFMEU) for the approval of a collective agreement between the union and T&M Building Contractors Pty Ltd, which was to govern employment conditions for the period 2015 to 2019. The application was heard by the Fair Work Commission, the Australian labour tribunal with jurisdiction to approve, reject, or modify collective agreements. The dispute centred around the validity and enforceability of specific provisions within the collective agreement, particularly those concerning the regulation of work hours, overtime, and the scope of union representation.

The central legal issue before the Commission was whether the provisions of the collective agreement were consistent with the Fair Work Act 2009 and other relevant industrial instruments. This required a detailed examination of the agreement's terms to ensure they adhered to the statutory requirements for approval, including whether they complied with the principles of good faith bargaining and did not undermine the fundamental rights of employees or employers. The Commission had to assess the balance struck by the parties in their negotiations and determine whether it reflected a fair and reasonable agreement.

After reviewing the evidence and submissions from both parties, the Commission found that the collective agreement contained provisions that were not in accordance with the statutory framework. Notably, certain clauses related to the regulation of overtime and work hours were deemed to be overly restrictive and to potentially disadvantage employees. Additionally, the scope of union representation was found to be overly broad, potentially infringing on the rights of non-union employees. Consequently, the Commission decided to reject the application for approval of the collective agreement. It directed the parties to negotiate a revised agreement that complied with the relevant industrial instruments and principles of good faith bargaining.

The Fair Work Commission's final order was that the application for approval of the T&M Building Contractors Pty Ltd and CFMEU Union Collective Agreement 2015-2019 was to be rejected. The Commission mandated that the parties return to the negotiating table to develop a revised agreement that met the statutory requirements and reflected a fair and reasonable outcome for both employers and employees. The Commission's decision underscored the importance of ensuring that collective agreements do not undermine the fundamental rights of workers and employers and must comply with the principles of good faith bargaining and the provisions of the Fair Work Act 2009.

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