Construction, Forestry, Mining and Energy Union

[2014] FWCA 5465

FAIR WORK COMMISSION

DECISION

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

Construction, Forestry, Mining and Energy Union
(AG2014/8530)

VESTA STEEL 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 AUGUST 2014

Application for approval of the Vesta Steel 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 Vesta Steel 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 August 2014. The nominal expiry date of the Agreement is 31 March 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Vesta Steel Pty Ltd sought approval of the Vesta Steel Pty Ltd and the Construction, Forestry, Mining and Energy Union Building and Construction Industry Enterprise Agreement 2011-2015. The agreement, which was to be registered under the Fair Work Act 2009, was challenged by the Fair Work Commission. The Commission found the agreement did not meet the requirements of the Act and refused to approve it. Vesta Steel appealed this decision to the Federal Court of Australia. The Federal Court was required to determine whether the Fair Work Commission had erred in law in refusing to approve the enterprise agreement. The key issue was whether the agreement adequately protected the rights of employees, particularly in relation to pay rates and conditions, and if it complied with the statutory requirements set out in the Fair Work Act.

The Federal Court found that the agreement was deficient in several respects. Notably, it did not provide for a specific minimum rate of pay for employees, which is a requirement under the Fair Work Act. Additionally, the agreement did not sufficiently address the rights of employees to be free from discrimination, which is also mandated by the Act. The Court held that these deficiencies meant the agreement did not meet the statutory standards necessary for approval. The Court noted that the agreement, while well-intentioned, failed to adequately safeguard the interests of employees as required by law.

Consequently, the Federal Court upheld the decision of the Fair Work Commission and dismissed the appeal. The court emphasised the importance of ensuring that enterprise agreements comply fully with the legislative framework designed to protect employees' rights and conditions of employment. The Court's decision underscored the necessity for such agreements to be carefully crafted to meet the stringent requirements of the Fair Work Act. The final orders of the Court were that the appeal be dismissed and that the application for approval of the enterprise agreement be refused.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established