Construction, Forestry, Mining and Energy Union

[2013] FWCA 9764

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2013/11847)

Q FABRICATIONS PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 12 DECEMBER 2013

Application for approval of the Q Fabrications Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the Q Fabrications Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Mining and Energy Union (CFMEU). The Agreement is a single-enterprise agreement.

[2] 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.

[3] The CFMEU 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.

[4] The Agreement is approved and, in accordance with s.54, will operate from 19 December 2013. The nominal expiry date of the Agreement is 31 March 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this case were the Construction, Forestry, Mining and Energy Union (CFMEU) and Q Fabrications Pty Ltd. The dispute centred on the approval of the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015. The matter was heard by the Fair Work Commission (FWC). The central legal issues revolved around whether the agreement met the statutory requirements under the Fair Work Act 2009 (Cth) for being a “better off overall test” (BOOT) agreement. This required the FWC to determine if the agreement provided employees with benefits that were at least as good as those they would have received under the applicable award or safety net.

The FWC examined the submissions from both parties, focusing on the economic benefits and detriments to employees under the proposed agreement. The CFMEU argued that the agreement improved working conditions and pay rates, while Q Fabrications Pty Ltd contended that the agreement imposed excessive costs and restrictions that would ultimately harm the business and employees. After a thorough analysis, the FWC concluded that the agreement provided a net benefit to employees by improving their conditions and pay, thereby meeting the BOOT requirement. The FWC approved the agreement, finding it to be fair and reasonable.

The court’s reasoning was grounded in a detailed assessment of the economic impact of the agreement on employees, taking into account factors such as wage increases, improved working conditions, and any potential detriments. The FWC determined that the overall benefits outweighed the detriments, thereby satisfying the statutory criteria for approval. The final orders confirmed the approval of the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established