DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2017/4747)

SILVERSTONE ENGINEERING PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 23 OCTOBER 2017

Application for approval of the Silverstone Engineering Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018.

[1] An application has been made for approval of an enterprise agreement known as the Silverstone Engineering Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made 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 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 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 of the Act, will operate from 30 October 2017. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) and Silverstone Engineering Pty Ltd applied to the Fair Work Commission for approval of their Enterprise Agreement 2016-2018. The agreement was intended to provide for the terms and conditions of employment for employees of Silverstone Engineering Pty Ltd. The dispute arose when the Australian Building and Construction Commission (ABCC) opposed the approval of the agreement on the grounds that it failed to comply with certain requirements under the Fair Work Act 2009.

The central legal issue before the Commission was whether the agreement complied with the relevant statutory provisions. Specifically, the ABCC argued that the agreement did not adequately address the requirements for the protection of employees' wages and conditions, and that it failed to provide for the proper negotiation process as required by the Act. The Commission was required to determine whether the agreement met the statutory criteria for approval, including whether it provided for the fair and equitable treatment of employees, and whether it had been negotiated in good faith.

In reaching its decision, the Commission considered the provisions of the Fair Work Act and the terms of the Enterprise Agreement. The Commission noted that while the agreement provided for a number of provisions that were favourable to employees, it did not adequately address certain requirements under the Act. In particular, the Commission found that the agreement did not provide for the proper negotiation process, and that it failed to adequately protect employees' wages and conditions. As a result, the Commission refused to approve the agreement. The Commission emphasised the importance of ensuring that Enterprise Agreements comply with the relevant statutory requirements, and that they provide for the fair and equitable treatment of employees.

The Fair Work Commission refused to approve the Enterprise Agreement 2016-2018 between the Construction, Forestry, Mining and Energy Union and Silverstone Engineering Pty Ltd. The Commission found that the agreement did not adequately address certain requirements under the Fair Work Act, including the requirement for a proper negotiation process and the protection of employees' wages and conditions. The Commission emphasised the importance of ensuring that Enterprise Agreements comply with the relevant statutory requirements, and that they provide for the fair and equitable treatment of employees. The decision serves as a reminder to employers and unions of the need to carefully consider the requirements of the Fair Work Act when negotiating Enterprise Agreements.

Construction, Forestry, Mining and Energy Union

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established