DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/6123)

MACQUARIE RIGGING PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2015-2019

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 6 OCTOBER 2016

Application for approval of the Macquarie Rigging Pty Ltd and CFMEU Union Collective Agreement 2015-2019.

[1] An application has been made for approval of a greenfields agreement known as the Macquarie Rigging Pty Ltd 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 13 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

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union (CFMEU) applied for the approval of the Macquarie Rigging Pty Ltd and CFMEU Union Collective Agreement 2015-2019. Macquarie Rigging Pty Ltd opposed the application on the basis that the agreement contained provisions that were contrary to public policy and therefore unenforceable. The dispute centred on several clauses in the collective agreement, including those relating to redundancy and termination payments, which were considered by Macquarie Rigging Pty Ltd to be more favourable than those provided for by the Fair Work Act 2009.

The Fair Work Commission was required to determine whether the provisions in the collective agreement were contrary to public policy and therefore unenforceable. The Commission examined the provisions in question and considered whether they were consistent with the objectives of the Fair Work Act 2009 and the principles of good faith bargaining. The Commission found that the provisions in the collective agreement were not contrary to public policy and were consistent with the objectives of the Act. The Commission also found that the provisions were the result of good faith bargaining between the parties and were therefore enforceable.

The Fair Work Commission approved the Macquarie Rigging Pty Ltd and CFMEU Union Collective Agreement 2015-2019, finding that the provisions in question were not contrary to public policy and were consistent with the objectives of the Fair Work Act 2009. The Commission found that the provisions were the result of good faith bargaining and were therefore enforceable. Macquarie Rigging Pty Ltd's application for disapproval of the collective agreement was dismissed.

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