Construction, Forestry, Mining and Energy Union

[2014] FWCA 4524

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/6643)

PREMIER DEVELOPMENTS PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 8 JULY 2014

Application for approval of the Premier Developments 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 Premier Developments 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, 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 15 July 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 matter before the Fair Work Commission involved an application for the approval of the Premier Developments Pty Ltd and the Construction, Forestry, Mining and Energy Union Building and Construction Industry Enterprise Agreement 2011-2015. The applicant, Premier Developments Pty Ltd, sought approval of the enterprise agreement under the Fair Work Act 2009. The respondent, the Construction, Forestry, Mining and Energy Union, opposed the application on the basis that the agreement did not meet the requirements of the Fair Work Act, particularly in relation to the coverage and scope of the agreement.

The primary legal issue before the Fair Work Commission was whether the enterprise agreement was valid and met all the statutory requirements under the Fair Work Act. This involved determining whether the agreement had been made freely and voluntarily by the parties, whether it provided for a fair and reasonable terms of employment, and whether it satisfied the coverage requirements of the Act. The Commission also needed to assess whether the agreement complied with any relevant national employment standards and if the process for making the agreement was procedurally fair.

The Fair Work Commission found that the enterprise agreement did not adequately cover all employees within the scope of the agreement. The Commission noted that the agreement failed to include all employees who were intended to be covered by its terms, thus rendering it incomplete and non-compliant with the Act. Additionally, the Commission observed procedural shortcomings in the process by which the agreement was made, which further undermined its validity. Consequently, the Commission rejected the application for approval of the enterprise agreement.

As a result of the Commission's decision, the application for approval of the Premier Developments Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 was dismissed. The Commission's decision highlights the importance of ensuring that enterprise agreements are comprehensive in their coverage and that the process for their creation is fair and transparent.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established