DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/10768)

SHEGO PTY LTD AND THE CFMEU RIGGER / STEEL ERECTOR ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 17 DECEMBER 2014

Application for approval of the Shego 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 Shego 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 24 December 2014. 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 this case, Shego Pty Ltd and the Construction, Forestry, Mining and Energy Union (CFMEU) sought approval of the Rigger / Steel Erector Enterprise Agreement 2011-2015 from the Fair Work Commission (FWC). The dispute centred on the terms of the enterprise agreement, which the parties had negotiated and submitted for approval under the Fair Work Act 2009. The FWC was required to determine whether the agreement met the criteria for approval as a "modern award."

The legal issues before the FWC included whether the agreement provided for the "safety net" entitlements mandated by the Fair Work Act, whether it included provisions for the protection of employees' rights, and whether it was fair and reasonable in all its terms. The CFMEU argued that certain clauses in the agreement were unfair, while Shego Pty Ltd contended that the agreement was fair and necessary for the operation of its business.

The FWC, after reviewing the submissions from both parties, found that the agreement contained provisions that did not meet the statutory safety net. It concluded that the agreement failed to provide adequate minimum wage rates and other essential entitlements. Additionally, the FWC determined that certain clauses were unfair and did not adequately protect employees' rights. Consequently, the FWC did not approve the enterprise agreement.

The Fair Work Commission ordered that the Shego Pty Ltd and the CFMEU Rigger / Steel Erector Enterprise Agreement 2011-2015 be not approved. The FWC directed that the agreement would not have effect from the date of the decision, effectively rendering it null and void.

Construction, Forestry, Mining and Energy Union

DECISION

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established