DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/7538)

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

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 15 DECEMBER 2016

Application for approval of the Merkon Constructions 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 Merkon Constructions 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 22 December 2016. 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, Merkon Constructions Pty Ltd, sought approval of an enterprise agreement from the Fair Work Commission, which was opposed by the Construction, Forestry, Mining and Energy Union (CFMEU). The case was heard by the Full Bench of the Fair Work Commission. The central issue before the court was whether the enterprise agreement complied with the requirements of the Fair Work Act 2009. Specifically, the CFMEU contended that the agreement did not meet the criteria for "genuine agreement" and was not in the best interests of the employees.

The court considered whether the agreement had been genuinely agreed upon by both parties and whether it was in the best interests of the employees. The court examined the process by which the agreement was negotiated and whether it was done so in good faith. It also assessed the provisions of the agreement to determine if they were fair and reasonable in all the circumstances. The court found that the agreement was genuinely negotiated and that its terms were fair and reasonable, thus meeting the requirements of the Fair Work Act.

The Fair Work Commission approved the enterprise agreement, dismissing the CFMEU's opposition. The court's decision was based on the evidence presented, which demonstrated that the agreement had been negotiated in good faith and that its terms were fair and reasonable. The court emphasised the importance of the genuine agreement requirement and the need for enterprise agreements to be in the best interests of the employees. The decision was made in accordance with the statutory framework provided by the Fair Work Act.

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