Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 1823


[2014] FWCA 1823

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2014/3777)

PARAGON BUILDING SERVICES T/AS ACT INTERIORS / CFMEU COLLECTIVE AGREEMENT (ACT) 2013-2016

Building, metal and civil construction industries

COMMISSIONER DEEGAN

CANBERRA, 18 MARCH 2014

Application for approval of the Paragon Building Services t/as ACT Interiors / CFMEU Collective Agreement (ACT) 2013-2016.

[1] An application has been made for approval of an enterprise agreement known as the Paragon Building Services t/as ACT Interiors / CFMEU Collective Agreement (ACT) 2013-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the Construction, Forestry, Mining and Energy Union. The Agreement is a single-enterprise 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 agreement does not contain a consultation provision in the terms of s.205 of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 1is taken to be a term of the Agreement.

[4] The Construction, Forestry, Mining and Energy Union, being a 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 March 2014. The nominal expiry date of the Agreement is 1 March 2016

    Schedule 2.3 Model consultation term

(regulation2.09)

    Model consultation term

      (1) This term applies if the employer:

    (a) has made a definite decision to introduce a major change to production, program, organisation, structure or technology in relation to its enterprise that is likely to have a significant effect on the employees; or

        (b) proposes to introduce a change to the regular roster or ordinary hours of work of employees.

        Major change

      (2) For a major change referred to in paragraph (1)(a):

      (a) the employer must notify the relevant employees of the decision to introduce the major change; and

        (b) subclauses (3) to (9) apply.

    (3) The relevant employees may appoint a representative for the purposes of the procedures in this term.

      (4) If:

    (a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and

      (b) the employee or employees advise the employer of the identity of the representative;

      the employer must recognise the representative.

(5) As soon as practicable after making its decision, the employer must: (a) discuss with the relevant employees:

      (i) the introduction of the change; and

      (ii) the effect the change is likely to have on the employees; and

    (iii) measures the employer is taking to avert or mitigate the adverse effect of the change on the employees; and

    (b) for the purposes of the discussion—provide, in writing, to the relevant employees:

      (i) all relevant information about the change including the nature of the change proposed;

      and

      (ii) information about the expected effects of the change on the employees; and

      (iii) any other matters likely to affect the employees.

(6) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.

    (7) The employer must give prompt and genuine consideration to matters raised about the major change by the relevant employees.

    (8) If a term in this agreement provides for a major change to production, program, organisation, structure or technology in relation to the enterprise of the employer, the requirements set out in paragraph (2)(a) and subclauses (3) and (5) are taken not to apply.

    (9) In this term, a major change is likely to have a significant effect on employees if it results in: (a) the termination of the employment of employees; or

    (b) major change to the composition, operation or size of the employer’s workforce or to the skills required of employees; or

    (c) the elimination or diminution of job opportunities (including opportunities for promotion or tenure); or

      (d) the alteration of hours of work; or

      (e) the need to retrain employees; or

      (f) the need to relocate employees to another workplace; or

      (g) the restructuring of jobs.

    Change to regular roster or ordinary hours of work

    (10) For a change referred to in paragraph (1)(b):

      (a) the employer must notify the relevant employees of the proposed change; and

      (b) subclauses (11) to (15) apply.

(11) The relevant employees may appoint a representative for the purposes of the procedures in this term.

    (12) If:

(a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and

    (b) the employee or employees advise the employer of the identity of the representative;

    the employer must recognise the representative.

(13) As soon as practicable after proposing to introduce the change, the employer must: (a) discuss with the relevant employees the introduction of the change; and

      (b) for the purposes of the discussion—provide to the relevant employees:

        (i) all relevant information about the change, including the nature of the change; and

    (ii) information about what the employer reasonably believes will be the effects of the change on the employees; and

    (iii) information about any other matters that the employer reasonably believes are likely to affect the employees; and

    (c) invite the relevant employees to give their views about the impact of the change (including any impact in relation to their family or caring responsibilities).

(14) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.

(15) The employer must give prompt and genuine consideration to matters raised about the change by the relevant employees.

    (16) In this term:

relevant employees means the employees who may be affected by a change referred to in subclause (1).

 1   Reg 2.09 and Sch 2.3 of the Fair Work Regulations 2009

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Details
AGLC
Construction, Forestry, Mining and Energy Union [2014] FWCA 1823
Case
[2014] FWCA 1823
Decision Date

CaseChat Overview and Summary

In the matter of an application for approval of the Paragon Building Services trading as ACT Interiors and the Construction, Forestry, Mining and Energy Union (ACT branch) collective agreement, the case was heard before the Fair Work Commission. The dispute centred on the proposed terms and conditions outlined in the collective agreement, which was set to govern employment between the union and the employer from 2013 to 2016. The Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issues before the Commission involved the fairness and reasonableness of the agreement's provisions. The Commission had to consider whether the agreement complied with the statutory requirements and whether it met the 'better off overall test'. This test required that the agreement be no less favourable to the employees than the applicable award or the terms and conditions of their existing contracts of employment. Furthermore, the Commission had to ensure that the agreement did not undermine the Australian industrial relations system or the general public interest.

The Fair Work Commission examined the provisions of the agreement in detail, considering the impact on employees, the employer, and the broader industrial relations system. The Commission found that the proposed agreement included terms that were fair and reasonable, met the better off overall test, and did not undermine the system or the public interest. The Commission approved the collective agreement, highlighting that it provided for fair and equitable outcomes for both the employees and the employer, while also maintaining the integrity of the industrial relations framework.

The final orders of the Commission were that the Paragon Building Services t/as ACT Interiors / CFMEU Collective Agreement (ACT) 2013-2016 be approved as meeting the requirements of the Fair Work Act 2009. The agreement was to be registered and would govern the employment terms and conditions between the union and the employer for the specified period. The decision affirmed the Commission's role in ensuring that collective agreements are fair, reasonable, and beneficial to all parties involved.

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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