DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/6236)

QUALITY DECORATING VICTORIA PTY LTD T/AS OPAT AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016 -2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 12 OCTOBER 2016

Application for approval of the Quality Decorating Victoria Pty Ltd T/As OPAT 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 Quality Decorating Victoria Pty Ltd T/As OPAT 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 19 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 the approval of an enterprise agreement between Quality Decorating Victoria Pty Ltd trading as OPAT and the Construction, Forestry, Mining and Energy Union (Victorian Construction and General Division). The dispute arose from a disagreement regarding the terms of the proposed enterprise agreement, which was to govern the employment conditions of workers within the company. The matter was heard in the Fair Work Commission, Australia's industrial relations tribunal, which is responsible for resolving workplace disputes.

The central legal issue before the Commission was whether the proposed enterprise agreement met the statutory requirements under the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement provided for minimum wages and conditions, did not include terms that were contrary to public policy, and was made in good faith. Additionally, the Commission had to consider whether the agreement allowed for proper consultation and if it was fairly negotiated.

In rendering its decision, the Commission examined the details of the proposed agreement and the evidence presented by both parties. It was determined that the agreement did not specify minimum wage rates for certain classifications of employees, which was a significant deficiency. The Commission also found that the agreement included terms that were contrary to public policy, such as provisions that allowed for the bypassing of standard industrial awards. The evidence showed that the agreement was not the product of genuine bargaining, as the union had not adequately consulted with its members. As a result, the Commission concluded that the application for approval of the enterprise agreement should be dismissed.

The Fair Work Commission ordered that the application for approval of the Quality Decorating Victoria Pty Ltd T/As OPAT and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018 be dismissed. The Commission directed that the agreement be returned to the parties for further negotiation and consultation to ensure compliance with the statutory requirements under the Fair Work Act 2009. This decision emphasised the importance of meeting all legislative criteria for an enterprise agreement to be approved and the necessity for genuine consultation and negotiation between employers and unions.

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