Construction, Forestry, Mining and Energy Union

[2014] FWCA 5065

FAIR WORK COMMISSION

DECISION

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

Construction, Forestry, Mining and Energy Union
(AG2014/6874)

KARAGATA AUST PTY LTD T/AS KARAGATA AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 29 JULY 2014

Application for approval of the Karagata Aust Pty Ltd T/As Karagata 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 Karagata Aust Pty Ltd T/As Karagata 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, 187 and 188 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 5 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

The applicant, the Construction, Forestry, Mining and Energy Union (CFMEU) sought approval of the Karagata and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015. The Fair Work Commission (FWC) was asked to determine whether the agreement should be approved and registered under the Fair Work Act 2009. The respondent, Karagata Aust Pty Ltd, did not oppose the application, but it did raise issues about the agreement's compliance with the Act.

The legal issues before the FWC were whether the agreement complied with the requirements of the Fair Work Act and whether it met the "better off overall test". The FWC was required to consider whether the agreement would lead to a positive change in the employment conditions of the employees covered by the agreement. The CFMEU argued that the agreement was fair and reasonable, while Karagata Aust Pty Ltd did not oppose the application but raised issues about the agreement's compliance with the Act.

The FWC found that the agreement met the better off overall test and that it complied with the requirements of the Fair Work Act. The FWC held that the agreement provided for fair and reasonable terms and conditions of employment and that it was in the best interests of the employees. The FWC also found that the agreement did not contain any provisions that would have a detrimental effect on the employees' employment conditions. The FWC was satisfied that the agreement was fair and reasonable and that it should be approved and registered under the Act.

The FWC approved and registered the agreement as a certified agreement under the Fair Work Act. The CFMEU and Karagata Aust Pty Ltd were bound by the terms and conditions of the agreement, and the employees covered by the agreement were entitled to the benefits and protections provided by the agreement. The FWC's decision provides guidance on the approval and registration of enterprise agreements under the Fair Work Act and the application of the better off overall test.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established