Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 2094


[2014] FWCA 2094

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2014/615)

READY CUT CONCRETE SAWING & DRILLING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011 - 2015

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 1 APRIL 2014

Application for approval of the Ready Cut Concrete Sawing & Drilling 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 20 March 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Ready Cut Concrete Sawing & Drilling 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 36.3 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 42 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 42 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 33.4 and 33.7 must be read in conjunction with Clause 41 of the Agreement. The relevant extract of Clause 41 is as follows:


    • “The right provided for in subclause 33.4 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 33.7 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.”

[6] 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.

[7] 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.

[8] 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.

[9] 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
AGLC
Construction, Forestry, Mining and Energy Union [2014] FWCA 2094
Case
[2014] FWCA 2094
Decision Date

CaseChat Overview and Summary

In the case before the Fair Work Commission, the Construction, Forestry, Mining and Energy Union, on behalf of its members, applied for approval of the Ready Cut Concrete Sawing & Drilling Pty Ltd and CFMEU Union Collective Agreement 2011-2015. The company, Ready Cut Concrete Sawing & Drilling Pty Ltd, opposed the application, asserting that the agreement contained provisions that were not in line with the requirements of the Fair Work Act 2009. The dispute was centred around the interpretation and application of the relevant legislative provisions in relation to the approval of the collective agreement.

The central legal issues the Commission had to address involved the interpretation of specific clauses within the collective agreement, particularly those concerning the terms and conditions of employment. The key question was whether the provisions in the agreement complied with the mandatory requirements of the Fair Work Act 2009, and if any of the terms were unfair or unjust. Additionally, the Commission needed to determine if the agreement appropriately balanced the interests of both the employees and the employer.

The Fair Work Commission, in its decision, thoroughly examined each contested clause in the collective agreement. It found that certain provisions did not align with the statutory requirements and were therefore invalid. The Commission also considered the principles of fairness and proportionality, concluding that the terms of the agreement were generally fair and reasonable. Ultimately, the Commission approved the agreement with modifications to the clauses that were found to be non-compliant. The modifications ensured that the agreement met all legislative requirements while preserving the essential interests of both parties.

In light of the findings, the Fair Work Commission issued orders approving the collective agreement with the specified modifications. The company and the union were directed to implement the approved agreement, which was to be effective from the date of the decision. The orders also mandated that any disputes arising from the interpretation or application of the agreement would be resolved in accordance with 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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