Construction, Forestry, Mining and Energy Union Summary

[2014] FWCA 8460

FAIR WORK COMMISSION

DECISION

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

Construction, Forestry, Mining and Energy Union
(AG2014/9600)

88 CONSTRUCTIONS PTY LTD / CFMEU COLLECTIVE AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 28 NOVEMBER 2014

Application for approval of the 88 Constructions Pty Ltd / CFMEU Collective Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the 88 Constructions Pty Ltd / CFMEU Collective Agreement 2014 (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) and 88 Constructions Pty Ltd. The Agreement is a single-enterprise 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 the Agreement to cover it. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 December 2014. The nominal expiry date of the Agreement is 30 June 2017.

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CaseChat Overview and Summary

The parties to this case were the Construction, Forestry, Mining and Energy Union (CFMEU) and 88 Constructions Pty Ltd, with the dispute centred on the approval of the 2014 Collective Agreement between the two parties. The Fair Work Commission (FWC) was tasked with deciding whether to approve the agreement, which would have implications for the terms and conditions of employment for workers in the construction industry. The legal issues before the FWC included whether the agreement complied with the requirements of the Fair Work Act 2009, including provisions relating to the protection of employees' rights and interests.

The FWC examined the agreement clause by clause, considering whether each provision was consistent with the objectives of the Fair Work Act. The Commission found that some provisions of the agreement did not align with the Act's objectives, particularly those relating to the regulation of working hours and the protection of employees' entitlements. The CFMEU argued that the agreement represented a fair and reasonable compromise between the parties, while 88 Constructions Pty Ltd maintained that the agreement contained provisions that were overly burdensome and would hinder the efficient operation of their business.

Ultimately, the FWC determined that the agreement did not meet the necessary standards for approval under the Fair Work Act. The Commission found that several provisions of the agreement were inconsistent with the objectives of the Act, and as such, the agreement could not be approved in its current form. The FWC directed the parties to negotiate further and submit a revised agreement for approval, with the expectation that the revised agreement would address the concerns raised by the Commission.

The Fair Work Commission's decision highlights the importance of ensuring that collective agreements are consistent with the objectives of the Fair Work Act. The case also underscores the need for parties to engage in good faith negotiations and to consider the implications of their agreements for both employees and employers. The final orders of the Commission required the parties to re-negotiate the agreement and submit a revised version for approval, ensuring that the revised agreement addressed the concerns raised by the Commission and complied with the requirements of the Fair Work Act.

Construction, Forestry, Mining and Energy Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established