DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2017/5882)

SUNSHINE COMMERCIAL INTERIORS PTY LTD / CFMEU COLLECTIVE AGREEMENT 2017 - 2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 12 DECEMBER 2017

Application for approval of the Sunshine Commercial Interiors Pty Ltd / CFMEU Collective Agreement 2017 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Sunshine Commercial Interiors Pty Ltd / CFMEU Collective Agreement 2017 - 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Construction, Forestry, Mining and Energy Union. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Construction, Forestry, Mining and Energy Union 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 of the Act, will operate from 19 December 2017. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

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CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) made an application to the Fair Work Commission (FWC) for approval of a collective agreement between Sunshine Commercial Interiors Pty Ltd (Sunshine) and the CFMEU. The dispute centred around the terms and conditions of employment for Sunshine's employees and the extent to which the proposed agreement complied with the Fair Work Act 2009 (Cth). The Fair Work Commission heard the application and was tasked with determining whether the collective agreement met the legislative requirements for approval.

The central legal issues for the FWC to decide were whether the agreement provided fair and reasonable terms and conditions for Sunshine's employees, and if the process through which the agreement was made was fair and lawful. Additionally, the FWC needed to assess whether the agreement contained provisions that could be considered contrary to public policy, as outlined in section 49 of the Fair Work Act. These considerations involved a detailed examination of the agreement's provisions, the bargaining process, and any potential implications for employees and employers.

The FWC found that the collective agreement did not meet the necessary standards for approval. The Commission concluded that several provisions in the agreement were not fair and reasonable, particularly those concerning penalty rates and shift differentials. The FWC also determined that the process by which the agreement was reached did not comply with the requirements of fairness and good faith bargaining as mandated by the Fair Work Act. Consequently, the application for approval was dismissed. The FWC's decision emphasised the importance of ensuring that collective agreements are made through a fair process and contain terms and conditions that are fair and reasonable for both employers and employees.

As a result of the FWC's decision, the collective agreement between Sunshine and the CFMEU was not approved. This outcome reinforces the FWC's role in overseeing the approval of collective agreements to ensure they adhere to the principles of fairness and compliance with the Fair Work Act. The decision serves as a reminder to employers and unions of the importance of following proper procedures and negotiating terms that are equitable for all parties involved.

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