Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 5698


[2014] FWCA 5698
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2014/6963)

LEDA SHOPFITTING CO PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2014-2018

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 20 AUGUST 2014

Application for approval of the Leda Shopfitting Co 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 4 August 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Leda Shopfitting Co 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 5698
Case
[2014] FWCA 5698
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved the Construction, Forestry, Mining and Energy Union (CFMEU) and Leda Shopfitting Co Pty Ltd. The central issue was the approval of a collective agreement between the parties for the period 2014 to 2018. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act. The legal issues primarily revolved around whether the collective agreement provided for fair and reasonable terms and conditions, and if it complied with the requirements set forth in the Act, including provisions for employee protections and dispute resolution mechanisms.

The Commission examined the terms of the agreement in detail, focusing on its fairness and reasonableness. It considered the extent to which the agreement addressed the needs of both employers and employees, and whether it provided adequate protections for workers. The Commission also assessed the procedural fairness in the negotiation process, ensuring that the agreement was reached without undue influence or coercion. The CFMEU argued that the agreement was fair and reasonable, while Leda Shopfitting Co Pty Ltd contended that certain provisions were overly restrictive and did not align with the company’s operational needs.

After thorough consideration, the Fair Work Commission found that the collective agreement was fair and reasonable in all its terms. The Commission concluded that the agreement provided for appropriate protections for employees and was negotiated in a fair and transparent manner. It determined that the agreement met all statutory requirements and would not have an adverse effect on the company’s ability to operate effectively. The Commission approved the collective agreement, emphasising its commitment to balancing the interests of both employers and employees.

The final orders of the Commission included the approval of the Leda Shopfitting Co Pty Ltd and CFMEU union collective agreement for the period 2014 to 2018, subject to its compliance with the Fair Work Act. The agreement was to be registered and would govern the terms and conditions of employment for the specified period, providing a framework for industrial relations between the parties.

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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