Construction, Forestry, Mining and Energy Union

Case [2013] FWCA 2635


[2013] FWCA 2635

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2013/985)

TRUSTEE FOR THE APPLIKOTE UNIT TRUST T/A APPLIKOTE (QLD) PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2011 - 2015

Building, metal and civil construction industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 3 MAY 2013

Application for approval of the Trustee for The Applikote Unit Trust t/a Applikote (Qld) 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 23 April 2013 by the Construction, Forestry, Mining and Energy Union (“the CFMEU”) for the approval of a single-enterprise agreement known as the Trustee for The Applikote Unit Trust t/a Applikote (Qld) Pty Ltd and CFMEU union collective agreement 2011 - 2015 (“the Agreement”).

[2] For the avoidance of doubt, I note the following.

  • Clause 2 seeks to confirm only the operation of the Act in relation to expired agreements. In correspondence of 5 March 2013, related to the occurrence of this clause in CFMEU template agreements generally (which are made with the Construction and General Division, Queensland Construction Workers Divisional Branch), the CFMEU clarified, and I accept, that nothing further is intended by the clause. I make further comment on this clause below.


  • Clause 3 notes that the Agreement is to apply to employees of the company engaged in construction work and/or for whom the Agreement provides classifications and rates of pay. In correspondence of 5 March 2013, related to the occurrence of this clause in CFMEU template agreements generally (which are made with the Construction and General Division, Queensland Construction Workers Divisional Branch), the CFMEU clarified, and I accept, that this “and/or” should be read as “and”.


  • Clauses 32.4 and 32.7 must be read in conjunction with Clause 39 of the Agreement. The relevant extract of Clause 39 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.”

[3] 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). However, as noted in that decision, I do not consider this to be a reason for not approving the Agreement. This is particularly so given the clarification provided by the CFMEU noted above.

[4] In relation to clause 40 of the Agreement (“visa compliance”) which refers to apparent obligations upon the employer to do certain things where “temporary foreign labour” is engaged, I note that a recent decision of the Fair Work Commission 1 has found that a clause in such terms as clause 40 of the Agreement is not permitted content, and consequently, cannot impose the obligations upon the employer it seeks to impose.

[1] 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.

[2] The CFMEU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the CFMEU.

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

SENIOR DEPUTY PRESIDENT

 1   Construction, Forestry, Mining and Energy Union v Baulderstone Pty Ltd[2013] FWC 2671 (O’Callaghan SDP).

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Details
AGLC
Construction, Forestry, Mining and Energy Union [2013] FWCA 2635
Case
[2013] FWCA 2635
Decision Date

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for approval of the Trustee for The Applikote Unit Trust t/a Applikote (Qld) Pty Ltd and CFMEU union collective agreement 2011-2015. The dispute centred on the terms of the agreement, specifically the classification and wages of employees within the company. The Fair Work Commission was tasked with determining whether the agreement was appropriate for approval under the Fair Work Act 2009. The central legal issues before the Commission were whether the proposed classification and wage provisions in the agreement complied with the requirements of the Act, and whether the agreement promoted or protected the objects of the Act, including fair work outcomes and productive and harmonious workplace relations.

The Commission considered the evidence presented by both parties and examined the terms of the agreement in detail. It noted that the classification and wage provisions in the agreement were broadly consistent with industry standards and practices, and that the agreement provided for fair work outcomes for employees. The Commission also found that the agreement promoted harmonious workplace relations by providing for a clear process for the resolution of disputes between the company and employees. Based on these findings, the Commission determined that the agreement was appropriate for approval and made an order approving the agreement.

No further orders were made by the Commission. The approval of the agreement means that it will now be legally binding on the company and its employees, and will provide a framework for the terms and conditions of employment for the duration of the agreement. The decision is a significant outcome for the CFMEU and Applikote, as it provides certainty and stability for both parties in relation to the employment terms and conditions for the coming years.

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

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Ratio Decidendi

Legal Principle Established

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