DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2017/3746)

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

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 11 SEPTEMBER 2017

Application for approval of the Seal Vic 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 Seal Vic 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 18 September 2017. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union (CFMEU) sought approval of the Seal Vic Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. Seal Vic Pty Ltd, an employer, and the CFMEU, a trade union, had entered into an enterprise agreement, which needed to be assessed by the Commission to ensure it met the criteria for approval under the Fair Work Act 2009. The dispute arose from Seal Vic Pty Ltd's objections to certain provisions of the agreement.

The primary legal issue before the Commission was whether the enterprise agreement complied with the requirements of the Fair Work Act, including provisions regarding the scope of the agreement, the classification of employees, and the terms and conditions of employment. The Commission had to determine if the agreement met the statutory criteria for approval, including whether it was free from prohibited content, provided for genuine bargaining, and was in the best interests of the employees.

The Commission examined the provisions of the agreement in detail. It found that while the agreement was generally well-drafted and provided for fair terms and conditions of employment, there were some issues with the classification of employees. The Commission held that certain classifications did not accurately reflect the roles and responsibilities of the employees, which could potentially lead to underpayment or misclassification. However, the Commission concluded that these issues could be rectified through minor amendments and that the overall benefits of the agreement to the employees outweighed the concerns. Consequently, the Commission approved the enterprise agreement, subject to the specified amendments.

The Commission ordered that the enterprise agreement be approved, with the condition that the parties must negotiate and agree on the necessary amendments to address the classification issues within 90 days of the decision. If the parties could not reach an agreement, the matter would be referred back to the Commission for further determination.

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