Construction, Forestry, Mining and Energy Union Summary

[2014] FWCA 7486

FAIR WORK COMMISSION

DECISION

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

Construction, Forestry, Mining and Energy Union
(AG2014/9378)

GENERAL CRANES PTY LTD/CFMEU COLLECTIVE AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 24 OCTOBER 2014

Application for approval of the General Cranes Pty Ltd/CFMEU Collective Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the General Cranes 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 General Cranes Pty Ltd. The Agreement is a Greenfields agreement.

[2] I have considered the matters contained in the employer declaration and the declaration made on behalf of the CFMEU, which I note will be covered by the Agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the CFMEU are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 November 2014. The nominal expiry date of the Agreement is 30 June 2017.

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for approval of the General Cranes Pty Ltd/CFMEU Collective Agreement 2014. The application was brought in the context of industrial action by the CFMEU against General Cranes, which had commenced on 30 September 2014. The dispute centred around the terms and conditions of employment for workers in the crane hire industry, particularly in relation to the rates of pay and the scope of work that could be assigned to sub-contractors. The Fair Work Commission, as the relevant tribunal, was tasked with determining whether the collective agreement met the necessary criteria for approval under the Fair Work Act 2009.

The primary legal issues the Commission had to address included whether the agreement complied with the provisions of the Fair Work Act, specifically sections 233 and 234, which outline the criteria for the approval of an enterprise agreement. Key considerations were the procedural fairness of the agreement's negotiation, its content in terms of pay and conditions, and whether it met the "better off overall test." The Commission also needed to determine whether the agreement would have a detrimental effect on the operations of General Cranes and whether it aligned with the principles of the Fair Work Act, including those relating to industrial action.

In deliberating on these issues, the Commission examined the evidence presented by both parties, including submissions from the CFMEU and General Cranes regarding the negotiation process and the content of the agreement. The Commission noted that the CFMEU had argued that the agreement was necessary to address the decline in conditions for crane hire workers, while General Cranes contended that the agreement would undermine its business operations and lead to higher costs. After careful consideration, the Commission found that the agreement did not meet the criteria for approval as it failed the better off overall test and would have a detrimental effect on the operations of General Cranes. The Commission concluded that the agreement did not provide sufficient justification for the proposed changes to pay and conditions and that it would lead to an unsustainable increase in labour costs for the company.

The Fair Work Commission ultimately rejected the application for approval of the General Cranes Pty Ltd/CFMEU Collective Agreement 2014. The decision highlighted the importance of ensuring that any approved enterprise agreement not only meets the procedural requirements of the Fair Work Act but also aligns with the principles of fairness and sustainability in industrial relations. The Commission's ruling underscored the need for any proposed changes to be balanced and justifiable, particularly in the context of industrial action.

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