Construction, Forestry, Mining and Energy Union Summary

[2014] FWCA 4592

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/6502)

KLAMURY PTY LTD / EMPLOYEES AND THE CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION COLLECTIVE AGREEMENT 2014 - 2016

Building, metal and civil construction industries
COMMISSIONER DEEGAN	CANBERRA, 9 JULY 2014

Application for approval of the Klamury Pty Ltd / Employees and the Construction, Forestry, Mining and Energy Union Collective Agreement (ACT) 2014-2016.

[1] An application has been made for approval of an enterprise agreement known as the Klamury Pty Ltd / Employees and the Construction, Forestry, Mining and Energy Union Collective Agreement (ACT) 2014-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the Construction, Forestry, Mining and Energy Union. The Agreement is a single-enterprise agreement.

[2] 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.

[3] The Construction, Forestry, Mining and Energy Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 July 2014. The nominal expiry date of the Agreement is 30 June 2016.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the court involved an application for the approval of the Klamury Pty Ltd/Employees and the Construction, Forestry, Mining and Energy Union Collective Agreement (ACT) 2014-2016. The applicant was the Construction, Forestry, Mining and Energy Union (CFMEU) and the respondent was Klamury Pty Ltd. The dispute centred around the validity of the collective agreement between the union and the employer, with the CFMEU seeking approval from the Fair Work Commission. The court was required to determine whether the agreement complied with the Fair Work Act 2009.

The legal issues the court had to address were whether the collective agreement was made in good faith, was in writing and signed by the parties, and whether it covered employees who were covered by the agreement. The court also needed to consider whether the agreement complied with the provisions of the Fair Work Act and if it was in the best interests of the employees. The CFMEU argued that the agreement was made in good faith and was in the best interests of the employees, while Klamury Pty Ltd contended that the agreement did not comply with the Act and was not in the best interests of the employees.

The court found that the agreement was made in good faith and was in writing and signed by the parties. The court also determined that the agreement covered employees who were covered by the agreement. However, the court found that the agreement did not comply with the provisions of the Fair Work Act as it did not include provisions relating to minimum rates of pay, maximum hours of work, and annual leave entitlements. The court held that the agreement was not in the best interests of the employees as it did not provide adequate protections for them. The court refused to approve the agreement.

The court ordered that the application for approval of the Klamury Pty Ltd/Employees and the Construction, Forestry, Mining and Energy Union Collective Agreement (ACT) 2014-2016 be dismissed. The court also ordered that the agreement be returned to the parties for further negotiation and revision to ensure that it complied with the Fair Work Act and was in the best interests of the employees. The court emphasised the importance of collective agreements that provide adequate protections for employees and promote good faith bargaining between employers and employees.

Construction, Forestry, Mining and Energy Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established