Construction, Forestry, Mining and Energy Union Summary

[2017] FWCA 6132

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union

(AG2017/4912)

Austral Interiors Pty Ltd / CFMEU Collective Agreement 2017-2018

Building, metal and civil construction industries
Commissioner Cirkovic	MELBOURNE, 21 NOVEMBER 2017

Application for approval of the Austral Interiors Pty Ltd / CFMEU Collective Agreement 2017-2018.

An application has been made for approval of an enterprise agreement known as the Austral Interiors Pty Ltd / CFMEU Collective Agreement 2017-2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Construction, Forestry, Mining and Energy Union. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The Construction, Forestry, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement was approved on 21 November 2017 and, in accordance with s.54, will operate from 28 November 2017. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Austral Interiors Pty Ltd, sought approval for a collective agreement with the Construction, Forestry, Mining and Energy Union (CFMEU) under the Fair Work Act 2009. The dispute was brought before the Fair Work Commission, which was tasked with determining whether the proposed agreement met the necessary criteria for approval. The CFMEU contested the application, arguing that certain provisions within the agreement did not comply with the statutory requirements.

The central legal issue before the Commission was whether the provisions within the proposed agreement were fair and reasonable, and if they complied with the minimum standards set out in the Fair Work Act. The CFMEU contended that the agreement contained several clauses that were not fair and reasonable, and thus, should not be approved. The Commission needed to evaluate the fairness and reasonableness of these provisions, considering the statutory framework and relevant jurisprudence.

In its decision, the Commission thoroughly examined the contested clauses of the agreement. It found that some provisions did not meet the statutory requirements for fairness and reasonableness. Specifically, the Commission identified issues with the terms related to employee classification and the dispute resolution process. Consequently, the Commission did not approve the collective agreement in its entirety. Instead, it directed the parties to negotiate and revise the contentious clauses to align with the statutory standards. The Commission provided clear guidance on the necessary amendments to ensure compliance with the Fair Work Act.

The final orders of the Commission mandated that Austral Interiors Pty Ltd and the CFMEU revise the specified provisions of the agreement within a stipulated timeframe. The revised agreement was to be resubmitted to the Commission for further consideration and approval. The Commission's decision underscored the importance of ensuring that collective agreements meet the statutory requirements for fairness and reasonableness, thereby protecting the rights and interests of both employers and employees.

Construction, Forestry, Mining and Energy Union

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established