Construction, Forestry, Mining and Energy Union Summary

[2014] FWCA 4513

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/6586)

STIPIC FAMILY TRUST T/AS NEWLINE PLASTERING PTY LTD AND THE CFMEU PLASTERING INDUSTRY ENTERPRISE AGREEMENT 2011-2015

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

Application for approval of the Stipic Family Trust T/As Newline Plastering Pty Ltd and the CFMEU Plastering Industry Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the Stipic Family Trust T/As Newline Plastering Pty Ltd and the CFMEU Plastering 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

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union (CFMEU) applied for approval of the Stipic Family Trust trading as Newline Plastering Pty Ltd and the CFMEU Plastering Industry Enterprise Agreement 2011-2015. The dispute centred on whether the enterprise agreement met the legal standards for approval under the Fair Work Act 2009, particularly focusing on provisions that might unduly restrict competition. The Stipic Family Trust argued that the agreement was necessary to ensure fair wages and conditions for plastering workers, while the CFMEU contended that the agreement was essential to protect its members' rights and interests.

The legal issues before the court were whether the provisions of the enterprise agreement were in compliance with the requirements of the Fair Work Act 2009 and whether any provisions that potentially restricted competition were justified under the Act's provisions. The court had to examine whether the agreement contained provisions that were necessary to prevent, eliminate or reduce adverse consequences for the employees, and whether these provisions were not more detrimental than beneficial to the parties involved.

The court found that several provisions of the enterprise agreement had the potential to unduly restrict competition, including those that limited the ability of plastering companies to enter into agreements with subcontractors. However, the court also recognised the necessity of the agreement to ensure fair wages and conditions for plastering workers. Ultimately, the court determined that the benefits of the agreement to the employees outweighed the potential detriment to competition. Consequently, the court approved the enterprise agreement subject to certain modifications to address the competition concerns.

The final orders of the court included the approval of the enterprise agreement with modifications to specific provisions to mitigate the potential for undue restriction of competition. The court required the parties to submit a modified agreement within a specified timeframe, ensuring that the changes would not significantly alter the overall intent and purpose of the original agreement.

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