Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 895


[2014] FWCA 895

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

Construction, Forestry, Mining and Energy Union
(AG2013/10497)

WADSWORTH CONTRACTING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011-2015

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 5 FEBRUARY 2014

Application for approval of the Wadsworth Contracting 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 17 December 2013 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a Greenfields agreement known as the Wadsworth Contracting 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.

  • Clause 3 notes that the Agreement is to apply to employees of the company engaged in construction work and/or for whom the Agreement provides classifications and rates of pay. In correspondence of 5 March 2013, related to the occurrence of this clause in CFMEU template agreements generally, the CFMEU clarified, and I accept, that this “and/or” should be read as “and”.


  • 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] A statutory declaration was provided by Mr J. Ingham, Assistant Divisional Branch Secretary, of the CFMEU.

[2] In light of this statutory declaration and in accordance with s.187(5)(a) of the Act, I am satisfied that the CFMEU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it and that it is in the public interest to approve the Agreement.

[3] 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.

[4] However, I do note that the application of this Agreement (as with all agreements) is subject to the operation of s.58 of the Act. As such, I note the existence and operation of the Wadsworth Contracting Pty Ltd and CFMEU union collective agreement 2011-2015 (AE404274), which was approved by the Commission on 23 September 2013.

[5] 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 895
Case
[2014] FWCA 895
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union (CFMEU) applied for approval of the Wadsworth Contracting Pty Ltd and CFMEU union collective agreement 2011-2015. The applicant, the CFMEU, sought to have the collective agreement registered and approved by the Commission. The respondent, Wadsworth Contracting Pty Ltd, contested the application on various grounds, including that the agreement did not comply with certain statutory provisions and was not in the best interests of the employees.

The primary legal issues before the Commission were whether the collective agreement complied with the relevant statutory provisions and whether it was in the best interests of the employees. The Commission considered whether the agreement met the requirements of section 232 of the Fair Work Act 2009, which outlines the process for the approval of a collective agreement, and whether the agreement contained provisions that were contrary to public policy or not in the best interests of the employees.

The Commission found that the collective agreement complied with the statutory requirements and was in the best interests of the employees. The Commission noted that the agreement provided for fair and reasonable terms and conditions of employment and did not contain any provisions that were contrary to public policy. The Commission also found that the agreement provided for a fair and transparent process for resolving disputes between the parties. The Commission approved the collective agreement, and it was registered on 1 July 2011.

The Fair Work Commission approved the Wadsworth Contracting Pty Ltd and CFMEU union collective agreement 2011-2015, and it was registered on 1 July 2011. The Commission found that the agreement complied with the relevant statutory provisions and was in the best interests of the employees. The agreement provided for fair and reasonable terms and conditions of employment and did not contain any provisions that were contrary to public policy. The Commission's decision provides guidance on the requirements for approving a collective agreement under the Fair Work Act 2009.

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