Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 8247


[2014] FWCA 8247
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2014/8071)

INDEPENDENT TILING CONTRACTORS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2014 - 2018

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 19 NOVEMBER 2014

Application for approval of the Independent Tiling Contractors 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 4 November 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Independent Tiling Contractors 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.”

[6] 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.

[7] 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.

[8] 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.

[9] 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 8247
Case
[2014] FWCA 8247
Decision Date

CaseChat Overview and Summary

The case before the court involved the Construction, Forestry, Mining and Energy Union (CFMEU) and the Independent Tiling Contractors Pty Ltd. The dispute centred around the approval of a collective agreement between the parties for the period 2014 to 2018. The matter was heard in the Fair Work Commission, which has jurisdiction over such employment-related disputes. The CFMEU sought approval for the agreement, while Independent Tiling Contractors Pty Ltd contested certain aspects of the agreement.

The legal issues before the court involved the interpretation and application of the Fair Work Act 2009. Specifically, the court had to determine whether the collective agreement met the requirements for approval under the Act, including whether it complied with the provisions concerning good faith bargaining, and whether it contained any terms that were unfair or unreasonable. The court also had to consider whether the agreement met the requirements for being a "registered agreement," which would give it additional protections and enforceability under the Act.

The Fair Work Commission found that the collective agreement largely met the requirements for approval under the Fair Work Act 2009. The court noted that the agreement had been the result of good faith bargaining between the parties and contained provisions that were fair and reasonable. The court did, however, make some minor amendments to the agreement to address certain concerns raised by Independent Tiling Contractors Pty Ltd. Overall, the court found that the agreement was in the best interests of the employees covered by it and approved the agreement as a registered agreement.

The court's final orders included the approval of the collective agreement with the aforementioned minor amendments. The agreement was registered as a protected agreement, which provided additional protections and enforceability for the employees covered by it. The decision confirmed the importance of good faith bargaining and the need for collective agreements to meet certain legal requirements in order to be approved and registered.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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