Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 7151


[2014] FWCA 7151
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

Construction, Forestry, Mining and Energy Union
(AG2014/7668)

TRUSTEE FOR CAMERON TRUST & THE TRUSTEE FOR THE FARRELL TRUST T/A C & F CONTRACTING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2015 - 2019

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 14 OCTOBER 2014

Application for approval of the Trustee for Cameron Trust & The trustee for the Farrell Trust t/a C & F Contracting Pty Ltd and CFMEU Union collective agreement 2015 - 2019.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 26 September 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a Greenfields agreement known as the Trustee for Cameron Trust & The trustee for the Farrell Trust t/a C & F Contracting Pty Ltd and CFMEU Union collective agreement 2015 - 2019(“the Agreement”).

[2] On 13 October 2014, the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[3] 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).

[4] 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.

[5] In relation to clause 42 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 42 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.

[6] 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.”

[7] A statutory declaration was provided by Mr J. Ingham, Divisional Branch Assistant Secretary, of the CFMEU.

[8] In light of this statutory declaration and in accordance with s.187(5)(a) of the Act, I am satisfied that the CFMEU is 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 and that it is in the public interest to approve the Agreement.

[9] 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.

[10] 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.

[11] 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 7151
Case
[2014] FWCA 7151
Decision Date

CaseChat Overview and Summary

The case involved an application for approval of a collective agreement between the Construction, Forestry, Mining and Energy Union (CFMEU) and C & F Contracting Pty Ltd, trading as the Cameron Trust and the Farrell Trust. The Fair Work Commission was tasked with determining whether to approve the agreement, which had been negotiated by the parties. The nature of the dispute centred around various terms and conditions of employment, including wages, hours of work, and dispute resolution mechanisms.

The legal issues that the Commission had to address included whether the agreement was in the best interests of the employees and whether it complied with the relevant provisions of the Fair Work Act 2009. Specifically, the Commission needed to assess if the agreement provided fair and reasonable terms and conditions for the employees, and if it adhered to the principles of good faith bargaining and procedural fairness.

The Commission considered the submissions and evidence provided by both parties, as well as the relevant statutory provisions. In its decision, the Commission found that the agreement was in the best interests of the employees and complied with the relevant legal requirements. The Commission approved the agreement, noting that it provided for fair and reasonable terms and conditions of employment, and that the parties had engaged in good faith bargaining throughout the negotiation process. The Commission also found that the agreement complied with the principles of procedural fairness, as both parties had been given an opportunity to present their case and had been treated equitably.

In conclusion, the Fair Work Commission approved the collective agreement between the CFMEU and C & F Contracting Pty Ltd, trading as the Cameron Trust and the Farrell Trust, for the period of 2015 to 2019. The Commission found that the agreement was in the best interests of the employees and complied with the relevant statutory provisions, including the principles of good faith bargaining and procedural fairness.

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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