DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2015/5057)

LINDORES PERSONNEL NO 1. PTY LTD (LABOUR HIRE) AND CFMEU UNION COLLECTIVE AGREEMENT 2015-2019

Building, metal and civil construction industries
COMMISSIONER ROE	PERTH, 25 SEPTEMBER 2015

Application for approval of the Lindores Personnel No 1. Pty Ltd (Labour Hire) and CFMEU Union Collective Agreement 2015-2019.

[1] An application has been made for approval of an enterprise agreement known as the Lindores Personnel No 1. Pty Ltd (Labour Hire) 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 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 25 September 2015 and, in accordance with s.54, will operate from 2 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 Construction, Forestry, Mining and Energy Union sought approval of the Lindores Personnel No 1. Pty Ltd (Labour Hire) and CFMEU Union Collective Agreement 2015-2019 in the Fair Work Commission. The applicant, a registered union, and the respondent, a labour hire company, had negotiated and signed a collective agreement that they sought to have approved and registered under the Fair Work Act 2009. The dispute centred on the legality and fairness of certain provisions within the collective agreement, specifically those relating to the imposition of union fees on non-union employees of the respondent.

The central legal issues before the Commission were whether the provisions in the agreement were lawful under the Fair Work Act, and whether they were fair and reasonable in the circumstances. The Commission had to consider if the union had the right to impose fees on non-union members and if the provisions met the standards of procedural fairness and good faith bargaining as required by the Act. Additionally, the Commission needed to assess if the agreement met the statutory requirement of being “in the interests of employees”.

The Commission found that the union did have the right to impose fees on non-union members under the Fair Work Act, provided that the fees were for the purposes of collective bargaining and not for political purposes. The Commission also determined that the provisions of the agreement were fair and reasonable, and that they met the standards of procedural fairness and good faith bargaining. The agreement was found to be in the interests of employees, as it provided for improved wages and conditions for union members, and did not unduly burden non-union employees. The Commission approved and registered the collective agreement, finding that it met all legal and fairness requirements 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