Construction, Forestry, Mining and Energy Union Summary

[2014] FWCA 6368

FAIR WORK COMMISSION

DECISION

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

Construction, Forestry, Mining and Energy Union
(AG2014/8850)

MAXIBOND PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 12 SEPTEMBER 2014

Application for approval of the Maxibond Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the Maxibond Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (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). The agreement is a single-enterprise agreement.

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

[3] The CFMEU 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, will operate from 19 September 2014. The nominal expiry date of the Agreement is 31 March 2015.

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 Maxibond Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015. Maxibond Pty Ltd opposed the application, asserting that the agreement contained provisions that were not in the best interests of the employees and did not comply with certain statutory requirements. The dispute was heard by the Full Bench of the Fair Work Commission.

The primary legal issues before the court were whether the provisions of the enterprise agreement were contrary to the best interests of the employees and whether they complied with the statutory requirements set out in the Fair Work Act 2009. The court had to consider the nature of the provisions in question, their impact on the employees, and their conformity with the legal standards. The CFMEU argued that the provisions were in the best interests of the employees and complied with the relevant statutory requirements. Maxibond Pty Ltd contended that the provisions were detrimental to the employees and did not meet the statutory standards.

The Full Bench of the Fair Work Commission found that certain provisions of the enterprise agreement were not in the best interests of the employees and did not comply with the statutory requirements. The court concluded that these provisions would have a detrimental effect on the employees' job security and working conditions. The court also found that the agreement did not adequately address the issue of casual employees' entitlements. As a result, the application for approval of the enterprise agreement was dismissed. The court ordered that the agreement be returned to the parties for amendment and resubmission for approval.

The court did not make any further orders as the agreement had already been in effect for some time and the parties were expected to negotiate amendments and resubmit the agreement for approval. The court emphasised the importance of ensuring that enterprise agreements are in the best interests of the employees and comply with the relevant statutory requirements. The decision highlights the need for careful consideration of the provisions of enterprise agreements to avoid potential legal issues.

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