DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/6977)

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

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 17 NOVEMBER 2016

Application for approval of the Lubeca 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 Lubeca 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 24 November 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the Fair Work Commission was an application for approval of an Enterprise Agreement between Lubeca Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division) for the period 2016-2018. The dispute centred on whether the Agreement met the requirements of the Fair Work Act 2009, particularly whether it provided for minimum terms and conditions, and whether it was made in good faith and without coercion.

The legal issues for the Commission to determine included whether the Agreement contained the necessary minimum terms and conditions as prescribed by the Fair Work Act, and whether the Agreement had been made in compliance with the good faith bargaining provisions. The Commission also needed to consider whether any provisions in the Agreement unfairly disadvantaged employees and whether the process of reaching the Agreement was free from coercion.

The Fair Work Commission found that the Agreement contained all the required minimum terms and conditions and was made in good faith. The Commission considered that the bargaining process was fair and transparent, and there was no evidence of coercion. While some provisions of the Agreement were seen as potentially disadvantaging employees, the Commission concluded that overall, the Agreement was in the best interests of the employees.

The Commission approved the Enterprise Agreement, subject to certain conditions, including that Lubeca Pty Ltd provide a report to the Commission within 90 days of the approval outlining the implementation of the Agreement. The decision provides clarity for employers and unions on the requirements for a valid Enterprise Agreement and the process for its approval.

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