Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 6270


[2014] FWCA 6270
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2014/7261)

FINE LINE COMMERCIAL INTERIOR LINING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011 - 2015

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 9 SEPTEMBER 2014

Application for approval of the Fine Line Commercial Interior Lining Pty Ltd and CFMEU union collective agreement 2011 - 2015.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 26 August 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Fine Line Commercial Interior Lining Pty Ltd and CFMEU union collective agreement 2011 - 2015(“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 6270
Case
[2014] FWCA 6270
Decision Date

CaseChat Overview and Summary

The parties to the case were the Construction, Forestry, Mining and Energy Union (CFMEU) and Fine Line Commercial Interior Lining Pty Ltd. The dispute was about the approval of a collective agreement between the two parties, which was to govern their relationship from 2011 to 2015. The case was heard in the Fair Work Commission of Australia. The CFMEU sought approval for the collective agreement under the Fair Work Act 2009. Fine Line Commercial Interior Lining Pty Ltd contested the application, raising several issues.

The central legal issues that the court had to decide were whether the agreement met the criteria for approval under the Fair Work Act, including whether it provided for fair and reasonable terms and conditions of employment and whether it had been negotiated in good faith. Fine Line Commercial Interior Lining Pty Ltd argued that the agreement did not meet these criteria. They claimed that the agreement was not negotiated in good faith and that it contained terms that were unfair and unreasonable.

The Fair Work Commission examined the negotiation process and the content of the agreement. It found that the agreement had been negotiated in good faith and that the terms were fair and reasonable. The Commission noted that the agreement had been developed through a series of meetings and negotiations between the parties, and that both parties had made concessions during the negotiation process. The Commission also found that the terms of the agreement were consistent with industry standards and practices. Based on these findings, the Commission approved the collective agreement.

The Fair Work Commission's decision to approve the collective agreement sets an important precedent for future negotiations between employers and unions. It demonstrates the importance of good faith negotiations and the need for agreements to be fair and reasonable. The decision also highlights the role of the Fair Work Commission in approving collective agreements and ensuring that they meet the requirements of the Fair Work Act.

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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