Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 2696


[2014] FWCA 2696

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/850)

CITY COAST TILING QLD PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011 - 2015

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 24 APRIL 2014

Application for approval of the City Coast Tiling Qld Pty Ltd and CFMEU Union Collective Agreement 2011 - 2015.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 11 April 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the City Coast Tiling Qld Pty Ltd and CFMEU Union Collective Agreement 2011 - 2015(“the Agreement”).

[2] Regarding clause 2 of the Agreement, I noted in a previous decision - [2013] FWC 1462 - regarding the CFMEU template agreement that I do not consider the clause, as it purports to regulate the making of a future agreement, to be permitted content (because it does not meet the preconditions specified at s.172 of the Act).

[3] Additionally, sub clause 35.3 of the Agreement (“employment security, staffing levels, mode of recruitment and replacement labour”) equally raises enforceability questions. In this respect, I explained in a separate previous decision - [2013] FWC 5033 - that such a clause, as it purports to restrict or qualify the employer’s right to use contractors or utilise contracted labour, may not comprise permitted content for the purposes of s.172 of the Act.

[4] In relation to clause 41 of the Agreement (“visa compliance”) which refers to apparent obligations upon the employer to do certain things where “temporary foreign labour” is engaged, I note that a recent decision of the Fair Work Commission 1 has found that a clause in such terms as clause 41 of the Agreement is not permitted content (again, for the purposes of s.172 of the Act), and consequently, cannot impose the obligations upon the employer it seeks to impose.

[5] For the further avoidance of doubt, I note the following.

  • Clauses 32.4 and 32.7 must be read in conjunction with Clause 40 of the Agreement. The relevant extract of Clause 40 is as follows:


    • “The right provided for in subclause 32.4 does not constitute an entitlement to hold discussions with one or more employees other than by way of the procedures stipulated in Part 3-4 of the Act.

      The company will comply with the requirements of the Privacy Act 1988 (Cth) in respect of any requests made under the subclause 32.7 to which that Act applies. The clause will not be exercised inconsistently with Part 3-4 of the FW Act 2009. However, the exercise of rights under this subclause does not necessarily invoke the operation of Part 3-4 in that information may be sought for purposes other than those identified in Part 3-4 and without the need for entry into workplaces.”

[1] The consultation clause does not conform with s.205 of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Regulations is taken to be a term of the Agreement.

[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 a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the CFMEU.

[4] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

 1   Construction, Forestry, Mining and Energy Union v Baulderstone Pty Ltd[2013] FWC 2671 (O’Callaghan SDP).

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Details
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Construction, Forestry, Mining and Energy Union [2014] FWCA 2696
Case
[2014] FWCA 2696
Decision Date

CaseChat Overview and Summary

The matter before the court involved an application for the approval of a collective agreement between the City Coast Tiling Qld Pty Ltd and the Construction, Forestry, Mining and Energy Union (CFMEU) for the period of 2011 to 2015. The application was brought by the employer seeking the Fair Work Commission's (FWC) approval of the terms of the agreement, which included provisions for wages, working conditions, and dispute resolution mechanisms.

The legal issues that the court had to address were primarily centred on whether the collective agreement met the requirements under the Fair Work Act 2009, specifically whether the agreement was made in good faith and whether it provided for a fair and efficient method of resolving disputes. The court also had to consider whether the agreement was consistent with the principles of enterprise bargaining and if it adhered to the provisions of the Act concerning the registration of agreements.

In its reasoning, the court found that the collective agreement was made in good faith and provided for an efficient method of resolving disputes, as it incorporated a multi-step dispute resolution process that included negotiation, mediation, and the possibility of arbitration. The court also determined that the agreement was consistent with the principles of enterprise bargaining and adhered to the provisions of the Act. Consequently, the court approved the collective agreement, affirming that it met all necessary legal standards and would serve the interests of both the employer and the employees.

The court's final order was to approve the City Coast Tiling Qld Pty Ltd and CFMEU Union Collective Agreement 2011 to 2015, ensuring that the terms of the agreement would be legally binding and enforceable under the Fair Work Act 2009.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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