DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2018/565)

FUGEN GROUP OF COMPANIES / CFMEU COLLECTIVE AGREEMENT 2018

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 21 MARCH 2018

Application for approval of the Fugen Group of Companies / CFMEU Collective Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Fugen Group of Companies / CFMEU Collective Agreement 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 28 March 2018. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union sought approval of a collective agreement from the Fair Work Commission, which was opposed by the Fugen Group of Companies. The Fair Work Commission was tasked with determining whether the agreement should be approved under section 235 of the Fair Work Act 2009. The central legal issue before the Commission was whether the collective agreement met the requirements set forth by the Fair Work Act, particularly in relation to the procedural fairness and the adherence to the Good Faith Bargaining principle.

The Commission examined the evidence and submissions presented by both parties. It found that the Fugen Group had not engaged in good faith bargaining as required by the Act. The Union had provided ample opportunity for negotiation and had made reasonable efforts to reach an agreement, whereas the Fugen Group had failed to reciprocate in good faith. The Commission concluded that the process leading up to the agreement did not reflect the spirit of cooperative negotiation envisaged by the legislation. As a result, the Fair Work Commission decided that the collective agreement should not be approved.

In light of the findings, the Fair Work Commission dismissed the application for approval of the collective agreement. The Commission emphasised the importance of good faith bargaining in the context of industrial relations and highlighted the need for parties to engage in meaningful negotiations. The decision underscored the legislative framework's intent to promote fair and equitable outcomes in the workplace, while also reinforcing the role of the Commission in overseeing the approval process of collective agreements.

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