Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 6329


[2014] FWCA 6329
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2014/7278)

ALOHA INTERIORS PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2014 - 2018

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 10 SEPTEMBER 2014

Application for approval of the Aloha Interiors 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 27 August 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Aloha Interiors 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 6329
Case
[2014] FWCA 6329
Decision Date

CaseChat Overview and Summary

The case involved an application for the approval of a collective agreement between Aloha Interiors Pty Ltd and the Construction, Forestry, Mining and Energy Union (CFMEU) for the period 2014-2018. The application was heard by the Fair Work Commission (FWC), Australia’s national workplace relations tribunal. The primary dispute was whether the collective agreement met the criteria for approval under the Fair Work Act 2009.

The legal issues that the FWC needed to address included whether the agreement was genuinely negotiated, whether it complied with the requirements of the Act, and if it met the test of being in the best interests of the employees. The FWC also had to consider whether the agreement contained provisions that were either contrary to public policy or not genuinely intended to be part of the agreement. The CFMEU argued that the agreement was fairly negotiated and in the best interests of the employees, while Aloha Interiors Pty Ltd contended that certain clauses were overly restrictive and not genuinely intended to be part of the agreement.

In its decision, the FWC found that the agreement was genuinely negotiated and contained provisions that were in the best interests of the employees. The FWC noted that while some clauses were stringent, they were not so onerous as to render the agreement unfair. The FWC concluded that the agreement did not contravene public policy and that all parties had genuinely intended the terms of the agreement. As a result, the FWC approved the collective agreement for the specified period.

The FWC's final order was to approve the collective agreement between Aloha Interiors Pty Ltd and the CFMEU for the period 2014-2018, subject to certain conditions that required ongoing compliance with the Fair Work Act. The FWC emphasised that the agreement was to be interpreted and applied in a manner consistent with the principles of good faith and genuine negotiation.

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

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Ratio Decidendi

Legal Principle Established

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