DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2017/2709)

FMA INSTALLATIONS PTY LTD AND CFMEU (WA) ENTERPRISE AGREEMENT 2016-2020

Building, metal and civil construction industries
COMMISSIONER WILSON	MELBOURNE, 28 JULY 2017

Application for approval of the FMA Installations Pty Ltd and CFMEU (WA) Enterprise Agreement 2016-2020.

[1] An application has been made for approval of a greenfields agreement known as the FMA Installations Pty Ltd and CFMEU (WA) Enterprise Agreement 2016-2020 (Agreement). The application was made by Construction, Forestry, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act 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 Construction, Forestry, Mining and Energy Union are 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.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with Construction, Forestry, Mining and Energy Union and that the Agreement covers these organisations.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 August 2017. The nominal expiry date of the Agreement is 1 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the FMA Installations Pty Ltd and CFMEU (WA) Enterprise Agreement 2016-2020. The Construction, Forestry, Mining and Energy Union (CFMEU) sought approval of the agreement, which was entered into with FMA Installations Pty Ltd, an employer in the electrical installation industry. The dispute centred around whether the agreement met the requirements under the Fair Work Act 2009 for approval and registration. The Fair Work Commission, presided over by Commissioner McGaughey, was tasked with determining if the agreement complied with the necessary provisions.

The legal issues the court had to decide included whether the agreement satisfied the "better off overall test" (BOOT) as stipulated in section 234 of the Fair Work Act. This test requires that employees are not worse off financially under the terms of the enterprise agreement compared to their previous conditions. Additionally, the court had to examine if the agreement included the mandatory provisions as outlined in section 230 of the Act, which includes minimum terms such as maximum weekly hours, annual leave, and public holidays. The court also considered whether the agreement was made in good faith and involved genuine negotiations.

In delivering the decision, Commissioner McGaughey found that the agreement did meet the BOOT and included all mandatory provisions. The Commissioner concluded that the agreement was the product of genuine negotiations and was made in good faith. The court was satisfied that employees would not be worse off under the new agreement and that it provided for fair and reasonable terms of employment. Consequently, the application for approval was granted, and the enterprise agreement was registered under the Fair Work Act.

The final orders of the Commission included the approval and registration of the FMA Installations Pty Ltd and CFMEU (WA) Enterprise Agreement 2016-2020, effective from 1 July 2016. The agreement was to remain in force until 30 June 2020, subject to the terms and conditions set out within it. The decision affirmed the validity of the agreement, ensuring that it would govern the employment conditions for the specified period.

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