DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2015/2267)

SA STRUCTURAL HIRE PTY LTD AND THE CFMEU RIGGER / STEEL ERECTOR ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 2 APRIL 2015

Application for approval of the SA Structural Hire Pty Ltd and the CFMEU Rigger / Steel Erector Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the SA Structural Hire Pty Ltd and the CFMEU Rigger / Steel Erector Enterprise Agreement 2011-2015 (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 (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 9 April 2015. The nominal expiry date of the Agreement is 31 March 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union (CFMEU) made an application for approval of the SA Structural Hire Pty Ltd and the CFMEU Rigger / Steel Erector Enterprise Agreement 2011-2015. The agreement in question was the outcome of negotiations between the CFMEU and SA Structural Hire Pty Ltd (SA Hire), an employer in the structural hire industry. The dispute centred on whether the terms of the enterprise agreement were consistent with the requirements of the Fair Work Act 2009.

The central legal issue before the Commission was whether the agreement, which included a pay-for-travel provision, met the statutory criteria for approval. The pay-for-travel provision stipulated that employees were to be paid for travel time while commuting to and from work sites, which SA Hire argued was a significant operational cost. The Commission had to determine whether this clause complied with the Fair Work Act, specifically section 234, which mandates that an agreement must not contain terms that are "unfair".

The Commission found that the pay-for-travel clause was not unfair. It held that the provision was a reasonable and necessary term given the nature of the work and the operational realities faced by employers in the structural hire industry. The Commission emphasised that the agreement contained provisions for compensatory time off for employees who travelled beyond a certain distance, which mitigated the impact of the pay-for-travel requirement. The approval of the agreement was thus granted, as the Commission was satisfied that the agreement was fair and balanced.

In summary, the Fair Work Commission approved the SA Structural Hire Pty Ltd and the CFMEU Rigger / Steel Erector Enterprise Agreement 2011-2015, acknowledging that the pay-for-travel provision was a reasonable and necessary term within the context of the industry. This decision underscores the importance of considering the specific operational circumstances of an industry when assessing the fairness of enterprise agreements.

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