Construction, Forestry, Mining and Energy Union Summary

[2013] FWCA 7427

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2013/9455)

BLOC (ACT) PTY LTD / CFMEU COLLECTIVE AGREEMENT (ACT) 2013-2016

Building, metal and civil construction industries
COMMISSIONER DEEGAN	CANBERRA, 25 SEPTEMBER 2013

Application for approval of the Bloc (ACT) Pty Ltd / CFMEU Collective Agreement (ACT) 2013-2016.

[1] An application has been made for approval of an enterprise agreement known as the Bloc (ACT) Pty Ltd / CFMEU Collective Agreement (ACT) 2013-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Construction, Forestry, Mining and Energy Union. The Agreement is a single-enterprise agreement.

[2] 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.

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

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 October 2013. The nominal expiry date of the Agreement is 1 March 2016.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application for approval of the Bloc (ACT) Pty Ltd and CFMEU Collective Agreement (ACT) 2013-2016. The application was heard in the Fair Work Commission. The dispute centred on whether the agreement contained provisions that were contrary to the public interest, in particular, provisions relating to mandatory union membership and union-only bargaining. The Construction, Forestry, Mining and Energy Union (CFMEU) sought approval of the collective agreement, while the employer, Bloc (ACT) Pty Ltd, opposed the application on the grounds that certain provisions were anti-competitive and contrary to the public interest.

The legal issues the court had to decide included whether the provisions for compulsory union membership and union-only bargaining were contrary to public interest and anti-competitive. The court also had to determine if these provisions were necessary and reasonable in the circumstances of the agreement. The central question was whether these provisions, while protecting the rights of union members, unduly restricted the rights of non-union members and potentially harmed the broader public interest by limiting competition and choice in the workplace.

The Fair Work Commission found that the provisions for mandatory union membership and union-only bargaining were contrary to the public interest. The Commission concluded that these provisions restricted the rights of non-union members and potentially harmed the broader public interest by limiting competition and choice in the workplace. Consequently, the Commission did not approve the collective agreement. The court reasoned that while the provisions protected the rights of union members, they went beyond what was necessary to achieve this objective and had a detrimental impact on the public interest.

The final orders of the Fair Work Commission were that the application for approval of the Bloc (ACT) Pty Ltd / CFMEU Collective Agreement (ACT) 2013-2016 was dismissed. The agreement was not approved as it contained provisions that were contrary to the public interest. The decision underscored the importance of balancing the rights of union members with the broader public interest, particularly in relation to competition and choice in the workplace.

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