Construction, Forestry, Mining and Energy Union Summary

[2013] FWCA 4999

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2013/7600)

ASSET & FACILITY MANAGEMENT PTY LTD - CFMEU ESSO ONSHORE & OFFSHORE CONSTRUCTION SITES AGREEMENT 2013-2015

Building, metal and civil construction industries
COMMISSIONER BLAIR	MELBOURNE, 24 JULY 2013

Application for approval of the Asset & Facility Management Pty Ltd - CFMEU ESSO Onshore & Offshore Construction Sites Agreement 2013-2015.

[1] An application has been made for approval of an enterprise agreement known as the Asset & Facility Management Pty Ltd - CFMEU ESSO Onshore & Offshore Construction Sites Agreement 2013-2015 (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 (CFMEU) and Asset & Facility Management Pty Ltd. The agreement is a greenfields agreement.

[2] I have considered the matters contained in the employer declaration and the declaration made on behalf of the CFMEU which will be covered by the Agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met. 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. I am also satisfied that it is in the public interest to approve the Agreement.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 July 2013. The nominal expiry date of the Agreement is 6 December 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) filed an application for the approval of the Asset & Facility Management Pty Ltd - CFMEU ESSO Onshore & Offshore Construction Sites Agreement 2013-2015. The matter was heard in the Fair Work Commission. The primary dispute centred on whether the proposed agreement adequately met the requirements for approval under the Fair Work Act 2009, particularly with respect to its compliance with the "better off overall test" and its fairness in terms of workers' rights and obligations.

The legal issues that the Fair Work Commission had to address included whether the agreement provided for appropriate wage rates and conditions that were better off for the majority of employees than what they would have under the applicable awards, and whether the agreement included provisions that were fair in terms of the balance of rights and obligations for both employers and employees. Additionally, the Commission had to consider whether the agreement met the procedural requirements for approval, such as proper bargaining and adequate consultation processes.

In its reasoning, the Fair Work Commission evaluated the terms of the agreement against the statutory criteria. It found that the agreement provided for wages and conditions that were better off overall for the majority of employees and contained provisions that were fair in terms of the balance of rights and obligations. The Commission also determined that the procedural requirements for approval had been met, including the demonstration of genuine bargaining and adequate consultation. Consequently, the Commission approved the agreement, recognising its compliance with the statutory standards and its fairness to the involved parties.

The final orders of the Fair Work Commission included the approval of the Asset & Facility Management Pty Ltd - CFMEU ESSO Onshore & Offshore Construction Sites Agreement 2013-2015, effective from the date of the decision. The agreement was deemed to comply with the relevant provisions of the Fair Work Act 2009 and was authorised for implementation.

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