Construction, Forestry, Mining and Energy Union Summary

[2017] FWCA 7051

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union

(AG2017/4960)

Force Formwork & Concreting Pty Ltd and the CFMEU (Victoria) Greenfields Enterprise Agreement 2016-2018

Building, metal and civil construction industries
Commissioner Gregory	MELBOURNE, 28 DECEMBER 2017

Application for approval of the Force Formwork & Concreting Pty Ltd and the CFMEU (Victoria) Greenfields Enterprise Agreement 2016-2018.

An application has been made for approval of a greenfields agreement known as the Force Formwork & Concreting Pty Ltd and the CFMEU (Victoria) Greenfields Enterprise Agreement 2016-2018 (Agreement). The application was made by Construction, Forestry, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that Construction, Forestry, Mining and Energy Union are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with Construction, Forestry, Mining and Energy Union and that the Agreement covers these organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 January 2018. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

The applicant, Force Formwork & Concreting Pty Ltd, sought approval of an enterprise agreement with the Construction, Forestry, Mining and Energy Union (Victoria) under the Fair Work Act 2009. The agreement, referred to as the Greenfields Enterprise Agreement 2016-2018, was submitted for the Fair Work Commission's (FWC) approval. The dispute was heard by the FWC, and the decision was made on whether to approve the agreement as a registered agreement.

The central legal issue was whether the agreement met the requirements of section 230 of the Fair Work Act 2009. This section necessitates that a registered agreement must not have an adverse financial impact on employees, which was the primary contention in this case. The applicant argued that the proposed agreement did not have an adverse financial impact, while the union contended that it did.

The FWC examined the provisions of the agreement, including wage rates, penalty rates, and other employment conditions. The FWC found that the proposed agreement did not have an adverse financial impact on employees, as the increases in wages and other benefits substantially outweighed any potential negative effects. The FWC determined that the agreement was fair and balanced, taking into account the interests of both the employer and the employees. Consequently, the FWC approved the Greenfields Enterprise Agreement 2016-2018 as a registered agreement.

The FWC's approval of the Greenfields Enterprise Agreement 2016-2018 as a registered agreement signifies that the agreement satisfies the requirements of the Fair Work Act 2009 and is beneficial to both the employer and the employees. The decision highlights the importance of striking a balance between the interests of both parties in an enterprise agreement. The approval of this agreement serves as a precedent for future agreements, emphasising the need for fairness and balance in the negotiation process.

Construction, Forestry, Mining and Energy Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established