DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2017/1337)

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

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 1 MAY 2017

Application for approval of the UBM Services 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 UBM Services 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 8 May 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

The applicant, UBM Services Pty Ltd, sought approval for an enterprise agreement from the Fair Work Commission under the Fair Work Act 2009. The respondent, Construction, Forestry, Mining and Energy Union, opposed the application on the basis that it did not meet the "better off overall test". The matter was heard by the Full Bench of the Fair Work Commission, comprising of President Dow, and Commissioners Holmes and Macfarlan. The court had to determine whether the proposed enterprise agreement met the "better off overall test" as stipulated in section 234 of the Fair Work Act 2009. This test required the Commission to assess whether the employees would be "better off overall" if the agreement was approved, compared to if they were covered by the relevant award or agreement.

The Full Bench found that the proposed agreement did meet the "better off overall test". The Commission considered the overall effect of the proposed agreement on the employees, including the financial and non-financial benefits, and concluded that the agreement was fair and reasonable. The Full Bench rejected the union's arguments and approved the enterprise agreement. The Full Bench found that the proposed agreement provided employees with increased wages, improved conditions, and additional benefits, which outweighed any potential disadvantages. The Commission held that the agreement was fair and reasonable, and met the "better off overall test".

In approving the enterprise agreement, the Full Bench made an order under section 235 of the Fair Work Act 2009, approving the agreement as a registered agreement. The order took effect from the date of the decision. The union's application for review of the decision was dismissed.

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