Construction, Forestry, Mining and Energy Union Summary

[2014] FWCA 4440

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/1602)

RACK & FILE COMMERCIAL PTY LTD AND CFMEU - FFPD ENTERPRISE AGREEMENT 2012

Timber and paper products industry
COMMISSIONER BLAIR	MELBOURNE, 3 JULY 2014

Application for approval of the Rack & File Commercial Pty Ltd and CFMEU - FFPD Enterprise Agreement 2012.

[1] An application has been made for approval of a single-enterprise agreement known as the Rack & File Commercial Pty Ltd and CFMEU - FFPD Enterprise Agreement 2012 (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).

[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 CFMEU, being the 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 10 July 2014. The nominal expiry date of the Agreement is 31 January 2015.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) and Rack & File Commercial Pty Ltd (Rack & File) applied to the Fair Work Commission (FWC) for approval of their enterprise agreement. The application was made under the Fair Work Act 2009, seeking the Commission's approval of the proposed agreement which was intended to replace an existing enterprise agreement. The CFMEU is a registered Australian union, and Rack & File is a registered employer. The dispute centred on the terms and conditions of employment contained within the proposed agreement, and whether these terms met the legal requirements for approval under the Fair Work Act.

The central legal issue before the FWC was whether the proposed enterprise agreement complied with the provisions of the Fair Work Act, particularly concerning the process for the approval of such agreements. The CFMEU argued that the agreement was appropriately negotiated and reflected the needs of the employees, while Rack & File contended that certain provisions were not in line with the legal standards and the Fair Work Act. The FWC had to determine whether the agreement contained mandatory terms, whether the negotiation process was fair and whether the agreement met the statutory requirements for approval.

The FWC, in its decision, found that the proposed agreement did not contain all the mandatory terms as required by the Fair Work Act. Additionally, the FWC determined that the negotiation process was not entirely compliant with the legal standards. Consequently, the FWC rejected the application for approval of the proposed enterprise agreement. The Commission emphasised the importance of ensuring that enterprise agreements meet all statutory requirements to protect the rights of employees and employers. The FWC's decision was based on the specific non-compliance issues identified in the proposed agreement and the need to adhere to the legislative framework governing enterprise agreements.

In its final orders, the FWC refused to approve the Rack & File Commercial Pty Ltd and CFMEU - FFPD Enterprise Agreement 2012. The Commission directed that the application be returned to the parties without a decision on the merits, allowing the parties to rectify the identified non-compliance issues and resubmit the agreement for consideration, if they so wished. This outcome underscores the importance of ensuring that enterprise agreements are fully compliant with the Fair Work Act to be approved by the FWC.

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