DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2015/767)

FORMSITE GROUP OF COMPANIES / CFMEU COLLECTIVE AGREEMENT 2015 - 2017

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 14 APRIL 2015

Application for approval of the Formsite Group of Companies / CFMEU Collective Agreement 2015 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the Formsite Group of Companies / CFMEU Collective Agreement 2015 - 2017 (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 (CFMEU). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met.

[3] The CFMEU 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 is approved and, in accordance with s.54, will operate from 21 April 2015. The nominal expiry date of the Agreement is 30 June 2017.

SENIOR DEPUTY PRESIDENT

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 a collective agreement between the Formsite Group of Companies and the Construction, Forestry, Mining and Energy Union for the period 2015 to 2017. The primary dispute centred around the procedural fairness and the substantive fairness of the collective agreement, which the Union argued was negotiated in good faith and contained terms and conditions that were fair and reasonable for the employees.

The legal issues that the Commission was required to decide included whether the agreement was made in compliance with the procedural requirements of the Fair Work Act 2009 and whether the terms of the agreement were fair and reasonable. The Union contended that the agreement was made following a process that involved genuine negotiation and that the terms were reasonable and fair for the employees. The Formsite Group of Companies, on the other hand, argued that the agreement was not made in good faith and that some of the terms were unreasonable.

The Commission found that the process of negotiation was generally compliant with the procedural requirements of the Act. The Union had provided evidence of the negotiation process, including meetings and communications between the parties, which demonstrated that there had been genuine bargaining. The Commission also found that the terms of the agreement were fair and reasonable, taking into account the nature of the industry, the bargaining power of the parties, and the interests of the employees. The Commission acknowledged that some of the terms may have been more favourable to the employees than to the employer, but found that this was not sufficient to render the agreement unfair or unreasonable.

The Commission approved the collective agreement, subject to certain minor amendments to correct technical errors. The decision highlights the importance of following proper procedural requirements in the negotiation of collective agreements and the need for the terms of the agreement to be fair and reasonable for all parties.

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