DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/6458)

TRENDZ CRANE & RIGGING PTY LTD AND THE CFMEU MOBILE CRANE HIRING INDUSTRY ENTERPRISE AGREEMENT 2016-2019

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 25 OCTOBER 2016

Application for approval of the Trendz Crane & Rigging Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the Trendz Crane & Rigging Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019 (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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[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 was approved on 25 October 2016 and, in accordance with s.54, will operate from 1 November 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for approval of the Trendz Crane & Rigging Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019. Trendz Crane & Rigging Pty Ltd, an employer in the mobile crane hiring industry, and the CFMEU, a registered trade union, had negotiated the agreement. The application was contested by the Australian Competition and Consumer Commission (ACCC), which raised concerns about the potential impact of the agreement on competition in the mobile crane hiring industry.

The central legal issues before the Commission were whether the agreement contained terms that might substantially lessen competition in the mobile crane hiring industry and whether the agreement complied with the relevant provisions of the Fair Work Act 2009. The ACCC argued that certain provisions of the agreement, such as minimum rates of pay and provisions related to the allocation of work, could potentially restrict competition by increasing costs and limiting flexibility for employers. The CFMEU, on the other hand, contended that the agreement was necessary to protect workers' rights and ensure fair wages and working conditions.

In determining whether the agreement substantially lessened competition, the Commission considered the nature of the mobile crane hiring industry, the market power of the parties involved, and the specific provisions of the agreement. The Commission found that the agreement did not contain terms that would substantially lessen competition in the industry. It held that the provisions in question did not have a significant anti-competitive effect and that the overall impact of the agreement was not likely to restrict competition. The Commission also found that the agreement complied with the relevant provisions of the Fair Work Act.

The Commission approved the agreement, subject to certain conditions, including the requirement that Trendz Crane & Rigging Pty Ltd provide the Commission with an annual report on the operation of the agreement for five years. The ACCC's concerns about potential anti-competitive effects were not substantiated, and the CFMEU's arguments in support of the agreement's provisions were accepted. The Commission's decision highlights the balance between protecting workers' rights and ensuring that enterprise agreements do not unduly restrict competition in the relevant industry.

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