DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/6432)

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

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 24 OCTOBER 2016

Application for approval of the Cranmore Carpentry 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 Cranmore Carpentry 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 the 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 31 October 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 case before the court involved an application for approval of an enterprise agreement between Cranmore Carpentry Pty Ltd and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The agreement in question was the Cranmore Carpentry Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018. The legal dispute arose as the Fair Work Commission had previously rejected the application for approval of the agreement, and Cranmore Carpentry sought review of this decision in the Federal Circuit Court of Australia.

The primary legal issue before the court was whether the Fair Work Commission had correctly exercised its discretion in rejecting the application for approval of the enterprise agreement. The court needed to consider whether the agreement met the requirements of the Fair Work Act 2009, specifically whether it was in the best interests of the employees and whether it was free from any unfair content. The court also needed to examine if the Commission had acted outside its jurisdiction or made an error of law in its decision-making process.

In reviewing the Fair Work Commission's decision, the court found that the Commission had indeed exercised its discretion in accordance with the law and had provided adequate reasons for its decision. The court held that the Commission was correct in finding that the agreement did not meet the criteria for approval as it contained provisions that were contrary to the best interests of the employees. Additionally, the court found no evidence of jurisdictional error or error of law in the Commission's decision-making process. Consequently, the court dismissed the application for review.

The court's decision resulted in the affirmation of the Fair Work Commission's rejection of the enterprise agreement. The court's order was that the application for review be dismissed with no orders as to costs. This outcome meant that the agreement would not be approved and would not be registered, leaving the parties to negotiate a new agreement that complied with the requirements of the Fair Work Act 2009.

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