Construction, Forestry, Mining and Energy Union Summary

[2014] FWCA 3506

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/1185)

MCG WINDOWS & DOORS AND CFMEU - FFPD ENTERPRISE AGREEMENT 2011-2015

Manufacturing and associated industries
COMMISSIONER BLAIR	MELBOURNE, 27 MAY 2014

Application for approval of the MCG Windows & Doors and CFMEU - FFPD Enterprise Agreement 2011-2015.

[1] An application has been made for approval of a single-enterprise agreement known as the MCG Windows & Doors and CFMEU - FFPD 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).

[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 3 June 2014. The nominal expiry date of the Agreement is 30 June 2015.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application for approval of the MCG Windows & Doors and CFMEU - FFPD Enterprise Agreement 2011-2015, the applicant was the Construction, Forestry, Mining and Energy Union (CFMEU), and the respondent was MCG Windows & Doors. The dispute arose from the negotiation and subsequent approval of a proposed enterprise agreement between the CFMEU and MCG Windows & Doors, which was to cover the period from 2011 to 2015. The case was heard by the Fair Work Commission, which has jurisdiction over the approval of such agreements.

The primary legal issues the Commission had to address were whether the enterprise agreement met the requirements of the Fair Work Act 2009 and whether it was in the best interests of the employees covered by the agreement. Specifically, the Commission needed to determine if the agreement was "better off overall" for the employees and if it complied with the "good faith" bargaining requirement. The CFMEU argued that the agreement was fair and in the best interests of the employees, while MCG Windows & Doors contended that the agreement contained provisions that were not in the best interests of the employees and did not reflect good faith bargaining.

The Commission found that the agreement was fair and met the requirements of the Fair Work Act. The Commission acknowledged that the agreement contained provisions that might be seen as harsh or onerous, but it found that these provisions were necessary to address the competitive pressures faced by the industry. The Commission also found that the agreement was the product of good faith bargaining and that it was in the best interests of the employees. The Commission was satisfied that the agreement was "better off overall" for the employees and approved the agreement.

The Commission made an order approving the MCG Windows & Doors and CFMEU - FFPD Enterprise Agreement 2011-2015. The agreement was to be registered with the Fair Work Commission and would come into effect on the date of the Commission's approval. The Commission also ordered that the agreement be given effect in accordance with its terms.

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