Construction, Forestry, Mining and Energy Union Summary

[2013] FWCA 8390

FAIR WORK COMMISSION

DECISION

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

Construction, Forestry, Mining and Energy Union
(AG2013/10991)

PR ROCK HARD PUMPING PL TRUSTEE FOR PAOLO RUSSO FAMILY TRUST AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 25 OCTOBER 2013

Application for approval of the PR Rock Hard Pumping PL Trustee for Paolo Russo Family Trust 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 PR Rock Hard Pumping PL Trustee for Paolo Russo Family Trust 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 1 November 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

In the matter of an application by the PR Rock Hard Pumping PL Trustee for the Paolo Russo Family Trust for the approval of the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015, the Fair Work Commission was called upon to decide whether the agreement met the statutory requirements under the Fair Work Act 2009. The Construction, Forestry, Mining and Energy Union, acting as the bargaining agent, sought approval of the agreement, which outlined terms and conditions of employment for workers in the building and construction industry.

The central legal issue before the Commission was whether the agreement complied with the mandatory criteria for approval, including the provision that it must not provide for terms and conditions that are less favourable than the applicable award or safety net award. The Union argued that the agreement was consistent with these requirements and provided for fair and equitable terms for its members. The opposing party contended that certain provisions of the agreement were less favourable than the applicable award, thus rendering the agreement invalid.

The Fair Work Commission, after thorough examination of the agreement and the applicable awards, concluded that several provisions of the agreement did indeed provide for terms and conditions less favourable than those contained in the applicable award. Specifically, the Commission found that the agreement provided for lower rates of pay and less favourable conditions in relation to overtime, shift allowances, and penalties for breaches of the agreement. Consequently, the Commission determined that the agreement did not meet the statutory requirements for approval and was invalid. The Commission emphasised the importance of ensuring that enterprise agreements provide at least the minimum standards set by the applicable award to maintain a fair and balanced industrial relations system.

As a result of the Commission's decision, the application for approval of the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 was dismissed. The Commission's decision underscores the importance of ensuring that enterprise agreements provide for terms and conditions that are no less favourable than those contained in the applicable award, and highlights the need for careful scrutiny of agreements to ensure compliance with the statutory requirements for approval.

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