Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 7371


[2014] FWCA 7371
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2014/7805)

RJR DEVELOPMENTS PTY LTD T/A RJR SHOPFITTING AND CFMEU UNION COLLECTIVE AGREEMENT 2014 - 2018

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 17 OCTOBER 2014

Application for approval of the RJR Developments Pty Ltd t/a RJR Shopfitting 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 9 October 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the RJR Developments Pty Ltd t/a RJR Shopfitting 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 7371
Case
[2014] FWCA 7371
Decision Date

CaseChat Overview and Summary

The parties involved in the case were RJR Developments Pty Ltd, trading as RJR Shopfitting, and the Construction, Forestry, Mining and Energy Union (CFMEU). The dispute centred around the application for approval of a collective agreement between the two parties, covering the period from 2014 to 2018. The case was heard in the Fair Work Commission of Australia. The legal issues the court had to address included whether the collective agreement complied with the relevant provisions of the Fair Work Act 2009, and whether it met the requirements for approval under the Fair Work (Registered Organisations) Act 2009.

The court examined the terms and conditions outlined in the collective agreement, including wages, working hours, and dispute resolution mechanisms. The court also considered the process by which the agreement was negotiated and the extent to which it provided for genuine bargaining between the parties. The court's reasoning was based on the principles of fairness, transparency, and good faith, as well as the need to balance the rights and interests of both employers and employees. Ultimately, the court found that the collective agreement was consistent with the relevant legislation and met the criteria for approval.

As a result of the court's decision, the application for approval of the RJR Developments Pty Ltd and CFMEU union collective agreement 2014 - 2018 was successful. The agreement was deemed to be fair and reasonable, and it was approved by the Fair Work Commission. The final orders of the court included the approval of the collective agreement, with the terms and conditions set out in the agreement to apply to the employees of RJR Developments Pty Ltd for the specified period.

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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