Construction, Forestry, Mining and Energy Union

Case [2013] FWCA 8844


[2013] FWCA 8844

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Construction, Forestry, Mining and Energy Union
(AG2013/9991)

CARPET CONTRACTORS (AUST) PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2012-2016

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 11 NOVEMBER 2013

Application for approval of the Carpet Contractors (Aust) Pty Ltd and CFMEU union collective agreement 2012-2016.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 5 November 2013 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Carpet Contractors (Aust) Pty Ltd and CFMEU union collective agreement 2012-2016 (“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 34.3 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 40 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 40 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 31.4 and 31.7 must be read in conjunction with Clause 39 of the Agreement. The relevant extract of Clause 39 is as follows:


    • “The right provided for in subclause 31.4 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 31.7 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] 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.

[7] 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.

[8] 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
AGLC
Construction, Forestry, Mining and Energy Union [2013] FWCA 8844
Case
[2013] FWCA 8844
Decision Date

CaseChat Overview and Summary

The parties involved in this case are the Construction, Forestry, Mining and Energy Union (CFMEU) and Carpet Contractors (Aust) Pty Ltd. The dispute centred around the approval of a collective agreement between the union and the company for the period 2012-2016. The case was heard in the Fair Work Commission of Australia. The legal issues that the court needed to determine were whether the agreement complied with the relevant provisions of the Fair Work Act 2009 and whether it was in the best interest of the employees.

The court considered several factors in its decision, including the terms of the agreement, the bargaining power of the parties, and the impact of the agreement on the employees. The court found that the agreement was generally in compliance with the Fair Work Act and that it was in the best interest of the employees. The court also noted that the agreement provided for a fair and reasonable outcome for both parties.

The court approved the collective agreement between the CFMEU and Carpet Contractors (Aust) Pty Ltd for the period 2012-2016, subject to certain modifications. The modifications included changes to the provisions relating to casual employees and the removal of a clause that allowed for the termination of employment on the grounds of redundancy. The court's decision was based on its finding that the agreement was in the best interest of the employees and that it complied with the relevant provisions of the Fair Work Act. The court also noted that the agreement provided for a fair and reasonable outcome for both parties.

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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