DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/7546)

COCONUT GROUP PTY LTD T/AS COCONUT STEEL FIXING 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 Coconut Group Pty Ltd T/As Coconut Steel Fixing 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 Coconut Group Pty Ltd T/As Coconut Steel Fixing 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

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CaseChat Overview and Summary

The case involved an application for the approval of the Coconut Group Pty Ltd trading as Coconut Steel Fixing and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The dispute was heard by the Fair Work Commission (FWC), an independent statutory tribunal established under the Fair Work Act 2009. The primary issue before the FWC was whether the enterprise agreement should be approved despite the fact that it did not include an enterprise bargaining clause, which is generally considered a key component of such agreements.

The court had to determine if the absence of an enterprise bargaining clause could be overlooked and if the agreement met the criteria for approval under section 234 of the Fair Work Act. The FWC considered various factors, including the agreement's compliance with the good faith bargaining requirements, its fairness and reasonableness, and whether it provided for a safety net of minimum wages and conditions. The FWC also examined if the agreement contained terms that were in the best interests of the employees and whether it provided for adequate dispute resolution mechanisms.

After careful consideration of the evidence and arguments presented, the FWC concluded that the agreement, despite lacking an enterprise bargaining clause, was fair and reasonable. The court found that the agreement met the statutory requirements for approval, as it provided for a safety net of minimum wages and conditions and included terms that were in the best interests of the employees. The FWC emphasised that the absence of an enterprise bargaining clause did not necessarily render an agreement unacceptable, as long as other criteria were met. Consequently, the FWC approved the Coconut Group Pty Ltd T/As Coconut Steel Fixing and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018.

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