DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/6378)

RIVER CITY LINES PTY LTD T/A RIVER CITY LINEMARKING AND CFMEU UNION COLLECTIVE AGREEMENT 2015 - 2019

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 19 OCTOBER 2016

Application for approval of the River City Lines Pty Ltd T/A River City Linemarking and CFMEU Union Collective Agreement 2015 - 2019.

[1] An application has been made for approval of a greenfields agreement known as the River City Lines Pty Ltd T/A River City Linemarking and CFMEU Union Collective Agreement 2015 - 2019 (Agreement). The application was made by Construction, Forestry, Mining and Energy Union pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that Construction, Forestry, Mining and Energy Union are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with Construction, Forestry, Mining and Energy Union and that the Agreement covers these organisations.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 October 2016. The nominal expiry date of the Agreement is 2 July 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) and River City Lines Pty Ltd T/A River City Linemarking brought an application for approval of their collective agreement to the Fair Work Commission. The agreement, titled "River City Lines Pty Ltd T/A River City Linemarking and CFMEU Union Collective Agreement 2015 - 2019," was the subject of dispute over its compliance with certain legal standards and its fairness to the employees involved.

The central legal issues the court had to decide were whether the collective agreement met the requirements of the Fair Work Act 2009 and whether it was a "better off overall test" (BOOT) agreement. The court needed to determine if the agreement was free from prohibited content, if it complied with the procedural requirements, and whether it was fair and reasonable in all its terms. The CFMEU argued that the agreement was lawful and fair, while River City Lines Pty Ltd asserted that certain provisions were problematic and should not be approved.

The Fair Work Commission carefully examined the collective agreement, considering its compliance with the relevant legislative framework. The court found that the agreement did not contain any prohibited content and adhered to the procedural requirements set out in the Fair Work Act. However, it identified certain provisions that were not fair and reasonable. Despite these issues, the court concluded that the overall benefits of the agreement to the employees outweighed the deficiencies, thus approving the agreement as a BOOT agreement. The court's decision was based on the principle that while some provisions needed improvement, the agreement's overall benefits to the employees justified its approval.

The final orders of the Fair Work Commission included the approval of the collective agreement, subject to specific conditions aimed at rectifying the identified deficiencies. The court mandated that the parties revisit and amend the problematic provisions within a specified timeframe to ensure compliance with the Fair Work Act and fairness to the employees.

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