Construction, Forestry, Mining and Energy Union

Case [2013] FWCA 5536


[2013] FWCA 5536

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

Construction, Forestry, Mining and Energy Union
(AG2013/2182)

SHUSAI PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011 - 2015

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 8 AUGUST 2013

Application for approval of the Shusai Pty Ltd and CFMEU union collective agreement 2011 - 2015.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 1 August 2013 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a Greenfields agreement known as the Shusai Pty Ltd and CFMEU union collective agreement 2011 - 2015(“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 35.3 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] For the further avoidance of doubt, I note the following.

  • Clauses 32.4 and 32.7 must be read in conjunction with Clause 40 of the Agreement. The relevant extract of Clause 40 is as follows:


    • “The right provided for in subclause 32.4 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 32.7 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.”

[5] A statutory declaration was provided by Mr D. Hanna, Divisional Branch Secretary, of the CFMEU.

[6] In light of this statutory declaration and in accordance with s.187(5)(a) of the Act, I am satisfied that the CFMEU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it and that it is in the public interest to approve the Agreement.

[7] 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.

[8] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

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Details
AGLC
Construction, Forestry, Mining and Energy Union [2013] FWCA 5536
Case
[2013] FWCA 5536
Decision Date

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) applied for the approval of a collective agreement between the Shusai Pty Ltd and the union for the period 2011-2015. The application was lodged with the Fair Work Commission (FWC). The nature of the dispute centred on whether the collective agreement complied with the relevant legislative provisions, specifically the Fair Work Act 2009.

The primary legal issues the FWC had to address included whether the collective agreement contained appropriate provisions regarding the terms and conditions of employment, whether it adhered to the requirements of the Fair Work Act, and whether it was in the best interests of the employees. The FWC also had to consider if the agreement provided adequate protections for the workers and if it met the standards of good faith bargaining.

In reaching its decision, the FWC examined the provisions of the Fair Work Act and the specific requirements for the approval of a collective agreement. The Commission assessed the terms and conditions outlined in the agreement, the process of bargaining, and the protections provided for the employees. The FWC concluded that the agreement met the necessary legislative standards and was in the best interests of the employees, given the balance of rights and obligations it established. Consequently, the FWC approved the collective agreement.

The FWC’s final order was the approval of the Shusai Pty Ltd and CFMEU union collective agreement for the period 2011-2015, subject to the terms and conditions specified in the agreement. This decision recognised the agreement as compliant with the Fair Work Act and beneficial for the employees involved.

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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