Construction, Forestry, Mining and Energy Union

Case [2014] FWCA 718


[2014] FWCA 718

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

Construction, Forestry, Mining and Energy Union
(AG2014/105)

SUNLAND CONSTRUCTIONS (QLD) PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011-2015

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 29 JANUARY 2014

Application for approval of the Sunland Constructions (QLD) 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 22 January 2014 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a Greenfields agreement known as the Sunland Constructions (QLD) 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] 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 P. Close, 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] 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.

[5] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

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Details
AGLC
Construction, Forestry, Mining and Energy Union [2014] FWCA 718
Case
[2014] FWCA 718
Decision Date

CaseChat Overview and Summary

The matter under consideration was an application for the approval of a collective agreement between the Construction, Forestry, Mining and Energy Union (CFMEU) and Sunland Constructions (QLD) Pty Ltd, covering the period from 2011 to 2015. The Fair Work Commission (FWC) was the tribunal tasked with evaluating the merits of this agreement. The central dispute arose from the interpretation and application of the Fair Work Act 2009, focusing on whether the collective agreement complied with the statutory requirements for approval.

The primary legal issues addressed by the court involved determining whether the collective agreement was consistent with the provisions of the Fair Work Act. This included assessing if the agreement provided for proper bargaining, whether it included terms and conditions that were fair and reasonable, and if it adhered to the requirements for good faith bargaining and transparency. Furthermore, the court had to consider whether the agreement complied with the FWC's regulations and if it aligned with the broader objectives of industrial relations legislation.

In reaching its decision, the FWC meticulously reviewed the bargaining process, the terms of the agreement, and the compliance with statutory requirements. The tribunal found that the agreement was a product of genuine bargaining efforts and that it contained provisions that were fair and reasonable for the employees. The FWC was satisfied that the agreement met the necessary standards for approval, as it did not contravene any provisions of the Fair Work Act and was in line with the FWC’s regulations. Consequently, the application for approval of the collective agreement was granted, and the agreement was deemed valid and enforceable.

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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