DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2017/408)

NATIONAL PRESSED METAL PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 20 FEBRUARY 2017

Application for approval of the National Pressed Metal 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 National Pressed Metal 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 27 February 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 Construction, Forestry, Mining and Energy Union (CFMEU) applied for the approval of the National Pressed Metal Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The Fair Work Commission was tasked with determining whether the agreement was appropriate for endorsement under the Fair Work Act 2009. The crux of the matter lay in the interpretation of the provisions of the enterprise agreement and their compliance with the relevant legislative framework, particularly sections 228 and 230 of the Act. The CFMEU argued that the agreement was fair and reasonable, while National Pressed Metal Pty Ltd contended that certain clauses were problematic and unfair.

The Fair Work Commission examined the specifics of the enterprise agreement, focusing on the bargaining positions of the parties and the fairness of the terms negotiated. It considered the public interest implications, including the impact on employees, employers, and the broader industry. The Commission also assessed whether the agreement met the requirements of good faith bargaining and whether it provided for fair and reasonable terms and conditions of employment. The analysis involved a detailed review of each clause, ensuring that they were not contrary to public policy or the objectives of the Fair Work Act.

Ultimately, the Fair Work Commission found that the enterprise agreement contained provisions that were not fair and reasonable. Specifically, certain clauses were deemed to be contrary to public policy and did not adequately protect employees' rights. Consequently, the Commission rejected the application for approval of the agreement. The decision was based on the need to ensure that enterprise agreements uphold the principles of fairness and good faith bargaining, safeguarding the interests of all parties involved.

In light of the decision, the Fair Work Commission did not approve the enterprise agreement. The Commission directed that the agreement could not be registered under the Fair Work Act, effectively rendering it unenforceable. This outcome underscores the importance of adhering to legislative standards and the Commission's role in upholding fair work practices.

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