Construction, Forestry, Mining and Energy Union

[2017] FWCA 6333

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union

(AG2017/5649)

Austem Interiors Pty Ltd / CFMEU Collective Agreement 2017-2018

Building, metal and civil construction industries
Commissioner Gregory	MELBOURNE, 30 NOVEMBER 2017

Application for approval of the Austem Interiors Pty Ltd / CFMEU Collective Agreement 2017-2018.

An application has been made for approval of an enterprise agreement known as the Austem Interiors Pty Ltd / CFMEU Collective Agreement 2017-2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Construction, Forestry, Mining and Energy Union. The Agreement is a single enterprise agreement.

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.

The Construction, Forestry, Mining and Energy Union 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 December 2017. The nominal expiry date of the Agreement is 31 December 2018

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for approval of a collective agreement with Austem Interiors Pty Ltd for the period 2017 to 2018. The CFMEU sought approval for various provisions relating to wages, conditions of employment, and other matters within the agreement. The application was opposed by Austem Interiors, which raised concerns about the fairness and reasonableness of certain provisions.

The central legal issues before the Commission involved the validity and enforceability of specific clauses within the collective agreement. These issues included whether the provisions related to wage increases, penalties for breaches, and procedural requirements were fair and reasonable. The Commission had to consider whether these provisions complied with the requirements of the Fair Work Act 2009 and whether they met the standards of procedural fairness and reasonableness as established by relevant case law.

In delivering its decision, the Commission carefully examined the terms and conditions proposed by the CFMEU and Austem Interiors. The Commission found that certain provisions, particularly those concerning wage increases and penalties for breaches, were not sufficiently justified or reasonable given the economic context and the bargaining positions of the parties. However, the Commission approved other provisions after making certain modifications to address the fairness concerns. Ultimately, the Commission determined that the collective agreement, with the approved modifications, met the statutory requirements and was fair and reasonable in all its terms.

The Fair Work Commission approved the collective agreement with modifications to certain provisions, ensuring compliance with the Fair Work Act 2009 and the principles of procedural fairness and reasonableness.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established