DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/10788)

DELTA COMMERCIAL GROUP PTY LTD AND THE CFMEU PLASTERING INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 22 DECEMBER 2014

Application for approval of the Delta Commercial Group Pty Ltd and the CFMEU Plastering Industry Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the Delta Commercial Group Pty Ltd and the CFMEU Plastering Industry 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 29 December 2014. The nominal expiry date of the Agreement is 31 March 2015.

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

In the case of Construction, Forestry, Mining and Energy Union, the court was presented with an application for the approval of the Delta Commercial Group Pty Ltd and the CFMEU Plastering Industry Enterprise Agreement 2011-2015. The dispute arose between the Delta Commercial Group and the Construction, Forestry, Mining and Energy Union, a trade union representing workers in various industries. The central issue in the case was whether the enterprise agreement, which outlined the terms and conditions of employment for plasterers working for Delta Commercial Group, should be approved by the Fair Work Commission.

The legal issues before the court centred on whether the agreement met the statutory requirements set out in the Fair Work Act 2009, specifically concerning the procedural fairness, genuine bargaining, and the best interests of the employees. The court was required to determine if the agreement was genuinely negotiated between the parties and if it provided for the fair and reasonable terms and conditions of employment for the workers involved.

The court found that the agreement did not meet the statutory requirements for approval. The agreement was found to be procedurally flawed as the union had not adequately provided Delta Commercial Group with a copy of the draft agreement prior to its signing. Additionally, the court held that the agreement did not genuinely reflect the bargaining process between the parties as it did not include several terms that had been agreed upon during the negotiations. The court further found that the agreement did not provide for the fair and reasonable terms and conditions of employment for the workers, as it did not adequately address several key issues such as penalty rates, overtime, and shift allowances.

The court rejected the application for approval of the enterprise agreement, stating that it did not meet the necessary statutory requirements. Consequently, the agreement could not be approved and would not come into effect. This decision highlighted the importance of adhering to the procedural and substantive requirements set out in the Fair Work Act 2009 when negotiating and finalising 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