DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/8016)

KELLER GROUND ENGINEERING PTY LTD / CFMEU COLLECTIVE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 9 JANUARY 2017

Application for approval of the Keller Ground Engineering Pty Ltd / CFMEU Collective Agreement 2016-2018.

[1] An application has been made for approval of an enterprise agreement known as the Keller Ground Engineering Pty Ltd / CFMEU Collective 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 16 January 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 sought approval of a collective agreement with Keller Ground Engineering Pty Ltd for the period 2016-2018. The application was brought before the Fair Work Commission, a tribunal established under the Fair Work Act 2009, which has the power to approve, reject or vary collective agreements. The dispute centred on whether the agreement complied with the requirements of the Act and whether it was made in good faith.

The central legal issue was whether the agreement satisfied the good faith requirement of section 230 of the Act. The Union argued that the agreement was made in good faith, while Keller Ground Engineering Pty Ltd contended that the Union had acted in bad faith by not providing relevant information and by making misrepresentations during negotiations. The court had to determine whether the Union's conduct met the threshold for good faith bargaining as required by the legislation.

The Fair Work Commission found that the Union had not acted in good faith. The tribunal found that the Union had failed to provide relevant information and had made misrepresentations during negotiations. The Union's conduct fell short of the good faith requirement as it demonstrated a lack of openness and honesty, and an intention to deceive. The tribunal rejected the application for approval of the collective agreement.

The Fair Work Commission rejected the application for approval of the collective agreement, finding that the Union had not acted in good faith. The tribunal's decision was based on the evidence presented, which demonstrated that the Union had failed to provide relevant information and had made misrepresentations during negotiations. The Union's conduct fell short of the good faith requirement as it demonstrated a lack of openness and honesty, and an intention to deceive. The rejection of the application means that the collective agreement will not be approved and the parties will continue to negotiate in good faith to reach a new agreement.

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