DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/7824)

ULTIMATE INTERIOR GROUP PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) PLASTERING ENTERPRISE AGREEMENT 2016 - 2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 29 DECEMBER 2016

Application for approval of the Ultimate Interior Group Pty Ltd and the CFMEU (Victorian Construction and General Division) Plastering Enterprise Agreement 2016 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Ultimate Interior Group Pty Ltd and the CFMEU (Victorian Construction and General Division) Plastering 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 5 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 dispute involved the Construction, Forestry, Mining and Energy Union (CFMEU) and the Ultimate Interior Group Pty Ltd, with the Fair Work Commission being the adjudicating body. The CFMEU sought approval of a proposed enterprise agreement between the parties for the period 2016 to 2018. The primary issue before the Commission was whether the agreement complied with the requirements of the Fair Work Act 2009, particularly whether it met the criteria for 'single interest' and 'good faith' bargaining, and if it provided fair and reasonable terms and conditions for the employees involved.

The Commission examined the bargaining process, the terms of the agreement, and the interests of the employees. It considered whether the agreement was negotiated in good faith and whether it reflected a fair and reasonable outcome for the employees. The Commission also looked into whether the agreement provided for the establishment of a specialised wage rate structure, which was a contentious point in the negotiations. The Commission found that the agreement was fair and reasonable, and it complied with the statutory requirements. The Commission concluded that the agreement was the product of good faith bargaining and represented a fair and reasonable outcome for the employees, despite the concerns raised by the CFMEU about the wage structure.

The Commission approved the agreement, highlighting that it contained provisions for a specialised wage rate structure, which was a compromise between the parties. The Commission was satisfied that the agreement was fair and reasonable, and it met the criteria for approval under the Fair Work Act 2009. The Commission noted that the agreement provided for a structured wage progression and included provisions for redundancy and other employee protections. The final order was the approval of the enterprise agreement, effective from 1 July 2016.

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