Construction, Forestry, Mining and Energy Union

[2014] FWCA 5600

FAIR WORK COMMISSION

DECISION

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

Construction, Forestry, Mining and Energy Union
(AG2014/1987)

CHH WOODPRODUCTS AUSTRALIA TUMUT SAWMILL AGREEMENT 2014

Timber and paper products industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 15 AUGUST 2014

Application for approval of the CHH Woodproducts Australia Tumut Sawmill Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the CHH Woodproducts Australia Tumut Sawmill Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Construction, Forestry, Mining and Energy Union (CFMEU) - Forestry and Furnishing Products Division, The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. As required by s.201(2) I note that the Agreement covers those organisations.

[4] The Agreement is approved. In accordance with s.54(1) it will operate from 22 August 2014. The nominal expiry date of the Agreement is 30 June 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) sought approval for the CHH Woodproducts Australia Tumut Sawmill Agreement 2014, which was to be a registered agreement under the Fair Work Act 2009. The Australian Building and Construction Commission (ABCC) opposed the approval of the agreement, arguing that it failed to meet the requirements of section 235 of the Act. The matter was heard by the Fair Work Commission (FWC), which had to determine whether the agreement complied with the relevant statutory provisions.

The central issue for the FWC was whether the agreement adequately met the standards prescribed by section 235 of the Act. This section mandates that registered agreements must not allow employers to dismiss employees without just cause or provide for wages and conditions less favourable than those stipulated in applicable awards or agreements. The ABCC argued that the agreement did not sufficiently address these requirements, particularly concerning the dismissal of employees and the setting of wages and conditions. The CFMEU contended that the agreement was compliant and met the necessary standards.

In evaluating the arguments, the FWC focused on the specific provisions of the agreement related to dismissal and wages. The Commission found that the agreement did not adequately address the protection against unjust dismissal, as it allowed for dismissals under certain circumstances without sufficiently ensuring that the dismissals were just. Furthermore, the FWC determined that the agreement did not adequately protect employees' wages and conditions, as it allowed for variations that could result in less favourable terms than those in applicable awards. Consequently, the FWC rejected the application for approval of the agreement.

The FWC's decision was clear: the CHH Woodproducts Australia Tumut Sawmill Agreement 2014 did not comply with section 235 of the Fair Work Act 2009. The FWC did not grant approval for the agreement, effectively leaving it unregistered. The parties were left to negotiate amendments to the agreement to address the identified deficiencies before reapplying for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established