Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 1766


[2014] FWCA 1766

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2014/485)

FITZGERALDS SHOPFITTING (AUST) PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2014 - 2018

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 1 APRIL 2014

Application for approval of the Fitzgeralds Shopfitting (Aust) Pty Ltd and CFMEU union collective agreement 2014 - 2018.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 5 March 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Fitzgeralds Shopfitting (Aust) Pty Ltd and CFMEU union collective agreement 2014 - 2018(“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.”

[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 1766
Case
[2014] FWCA 1766
Decision Date

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union brought an application to the Fair Work Commission for the approval of a collective agreement with Fitzgeralds Shopfitting (Aust) Pty Ltd. The dispute centred on whether the collective agreement complied with the relevant statutory requirements and whether it met the criteria for approval under the Fair Work Act. The Fair Work Commission was tasked with determining the validity and enforceability of the agreement.

The primary legal issue before the Commission was whether the collective agreement was consistent with the provisions of the Fair Work Act, particularly regarding its procedural fairness and whether it adhered to the standards set for workplace agreements. Additionally, the Commission needed to assess whether the agreement contained all the mandatory terms and conditions required by law and if it had been fairly negotiated between the parties.

The Commission found that the collective agreement was procedurally fair and had been negotiated in good faith. It confirmed that the agreement met all the statutory requirements and contained all the mandatory terms and conditions as stipulated by the Fair Work Act. The Commission approved the collective agreement, highlighting its compliance with the necessary legislative standards and the fairness of the negotiation process.

The Commission's final order was to approve the Fitzgeralds Shopfitting (Aust) Pty Ltd and CFMEU union collective agreement for the period 2014-2018, recognising its validity and enforceability under the Fair Work Act.

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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