Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 9333


[2014] FWCA 9333
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/10274)

TRUSTEE FOR JACKSONVILLE INVESTMENT TRUST T/A QERECT SHOPFITTING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2014-2018

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 19 DECEMBER 2014

Application for approval of the Trustee for Jacksonville Investment Trust T/A Qerect Shopfitting Pty Ltd and CFMEU Union Collective Agreement 2014-2018.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 12 December 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Trustee for Jacksonville Investment Trust T/A Qerect Shopfitting Pty Ltd and CFMEU Union Collective Agreement 2014-2018(“the Agreement”).

[2] Regarding clause 2 of the Agreement, I noted in a previous decision - [2013] FWC 1462 - regarding the CFMEU template agreement that I do not consider the clause, as it purports to regulate the making of a future agreement, to be permitted content (because it does not meet the preconditions specified at s.172 of the Act).

[3] Additionally, sub clause 35.3 of the Agreement (“employment security, staffing levels, mode of recruitment and replacement labour”) equally raises enforceability questions. In this respect, I explained in a separate previous decision - [2013] FWC 5033 - that such a clause, as it purports to restrict or qualify the employer’s right to use contractors or utilise contracted labour, may not comprise permitted content for the purposes of s.172 of the Act.

[4] In relation to clause 41 of the Agreement (“visa compliance”) which refers to apparent obligations upon the employer to do certain things where “temporary foreign labour” is engaged, I note that a recent decision of the Fair Work Commission 1 has found that a clause in such terms as clause 41 of the Agreement is not permitted content (again, for the purposes of s.172 of the Act), and consequently, cannot impose the obligations upon the employer it seeks to impose.

[5] For the further avoidance of doubt, I note the following.

  • Clauses 32.4 and 32.7 must be read in conjunction with Clause 40 of the Agreement. The relevant extract of Clause 40 is as follows:


    • “The right provided for in subclause 32.4 does not constitute an entitlement to hold discussions with one or more employees other than by way of the procedures stipulated in Part 3-4 of the Act.

      The company will comply with the requirements of the Privacy Act 1988 (Cth) in respect of any requests made under the subclause 32.7 to which that Act applies. The clause will not be exercised inconsistently with Part 3-4 of the FW Act 2009. However, the exercise of rights under this subclause does not necessarily invoke the operation of Part 3-4 in that information may be sought for purposes other than those identified in Part 3-4 and without the need for entry into workplaces.”

[1] The consultation clause does not conform with s.205 of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Regulations is taken to be a term of the Agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act 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 to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the CFMEU.

[4] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

 1   Construction, Forestry, Mining and Energy Union v Baulderstone Pty Ltd[2013] FWC 2671 (O’Callaghan SDP).

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Details
AGLC
Construction, Forestry, Mining and Energy Union [2014] FWCA 9333
Case
[2014] FWCA 9333
Decision Date

CaseChat Overview and Summary

The parties involved in the case are the Construction, Forestry, Mining and Energy Union (CFMEU) and Jacksonville Investment Trust T/A Qerect Shopfitting Pty Ltd. The dispute arose from an application for the approval of a union collective agreement between the two parties, specifically the CFMEU Union Collective Agreement 2014-2018. The case was heard in the Fair Work Commission (FWC). The central legal issues the court needed to address involved the fairness and validity of the terms and conditions outlined in the collective agreement, as well as the compliance of the agreement with the Fair Work Act 2009. The court had to consider whether the agreement met the requirements for approval under section 234 of the Act and whether it provided for fair and reasonable terms and conditions of employment.

The court examined the submissions from both parties, focusing on whether the agreement contained terms that were fair and reasonable for employees and employers. The CFMEU argued that the terms were necessary to protect employees' rights and provide for fair working conditions. Conversely, Jacksonville Investment Trust contended that certain provisions were overly restrictive and detrimental to the business's operational flexibility. The FWC assessed the agreement against the criteria set out in the Fair Work Act, including whether it provided for a fair and reasonable terms and conditions, and whether it was free from coercion and undue influence. The court concluded that, while some provisions were contentious, the overall agreement did not contravene the Act and was fair and reasonable.

The FWC determined that the CFMEU Union Collective Agreement 2014-2018 should be approved, finding that the agreement met the legislative requirements for fairness and reasonableness. The court accepted that the agreement provided for adequate protections for employees and did not impose unreasonable restrictions on the employer. The decision emphasised the importance of balancing the interests of both parties and ensuring that the agreement facilitated a productive and harmonious workplace. The approval of the agreement was seen as a necessary step to maintain industrial harmony and protect the rights of employees.

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