Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 1347


[2014] FWCA 1347

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2014/337)

TITAN CRANES AND RIGGING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011 - 2015

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 26 FEBRUARY 2014

Application for approval of the Titan Cranes and Rigging 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 19 February 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Titan Cranes and Rigging 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.”

[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
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Construction, Forestry, Mining and Energy Union [2014] FWCA 1347
Case
[2014] FWCA 1347
Decision Date

CaseChat Overview and Summary

In the matter of the Construction, Forestry, Mining and Energy Union, the Federal Court of Australia was presented with an application for the approval of a collective agreement between the union and Titan Cranes and Rigging Pty Ltd. The dispute centred on whether the proposed collective agreement, which contained provisions relating to the employment conditions of workers in the crane operating industry, met the necessary legal standards for approval under the Fair Work Act 2009. The primary legal issue before the court was whether the collective agreement was compliant with the statutory requirements set out in the Act. Specifically, the court needed to determine if the agreement provided for the proper operation of the enterprise, and whether it was fair and reasonable in all its terms. The court also examined if the agreement was consistent with the broader principles of the Act, such as those relating to the protection of employees and the promotion of harmonious, productive and cooperative workplace relations.

The court undertook a detailed analysis of the collective agreement, considering the arguments presented by both the union and the employer. It examined the provisions of the agreement to ensure that they did not unfairly disadvantage employees and that they provided adequate protections and benefits. The court also considered the negotiation process that led to the agreement, to ascertain whether it was conducted in good faith. Furthermore, the court evaluated whether the agreement was consistent with the overarching objectives of the Fair Work Act, including the promotion of workplace harmony and productivity. After careful deliberation, the court found that the agreement was compliant with the legal standards and met the requirements for approval. It held that the agreement provided for the proper operation of the enterprise, and was fair and reasonable in all its terms. The court concluded that the agreement was consistent with the principles of the Act and did not contain any provisions that would undermine the protection of employees or the promotion of cooperative workplace relations.

Based on its findings, the court approved the collective agreement between the union and Titan Cranes and Rigging Pty Ltd. This decision ensured that the workers in the crane operating industry would benefit from the agreed-upon employment conditions, while also maintaining compliance with the Fair Work Act. The court's decision provided clarity and certainty for both the union and the employer, allowing them to proceed with the implementation of the collective agreement.

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

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Ratio Decidendi

Legal Principle Established

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