DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/5877)

IBM RIGGING & CONSTRUCTION PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) RIGGER/STEEL ERECTOR ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 23 SEPTEMBER 2016

Application for approval of the IBM RIGGING & CONSTRUCTION PTY LTD and the CFMEU (Victorian Construction and General Division) Rigger/Steel Erector Enterprise Agreement 2016-2018.

[1] An application has been made for approval of an enterprise agreement known as the IBM RIGGING & CONSTRUCTION PTY LTD and the CFMEU (Victorian Construction and General Division) Rigger/Steel Erector 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 3 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 matter before the Fair Work Commission was an application for approval of the IBM RIGGING & CONSTRUCTION PTY LTD and the CFMEU (Victorian Construction and General Division) Rigger/Steel Erector Enterprise Agreement 2016-2018. The application was brought by the union, who sought to have the enterprise agreement approved by the Commission under section 234 of the Fair Work Act 2009. The employer contested the application on the basis that the agreement did not meet the "better off overall test" required by section 232 of the Act.

The primary issue for the Commission to decide was whether the proposed enterprise agreement was a "single interest employer agreement" within the meaning of section 172(1)(a) of the Fair Work Act 2009. If the agreement was a "single interest employer agreement", it was not subject to the "better off overall test" and could be approved without further consideration. Alternatively, if the agreement was not a "single interest employer agreement", the Commission was required to consider whether it met the "better off overall test" by assessing whether the employees would be better off overall if the agreement was approved, compared to the relevant baseline.

The Commission found that the proposed enterprise agreement was not a "single interest employer agreement". However, the Commission was satisfied that the agreement met the "better off overall test". The Commission found that the agreement provided for improved wages and conditions for employees, and that the overall benefits of the agreement outweighed any potential detriments. Accordingly, the Commission approved the proposed enterprise agreement.

The Fair Work Commission approved the IBM RIGGING & CONSTRUCTION PTY LTD and the CFMEU (Victorian Construction and General Division) Rigger/Steel Erector Enterprise Agreement 2016-2018. The agreement is now a legally binding enterprise agreement between the employer and the employees covered by the agreement. The agreement provides for improved wages and conditions for employees, and is in force from 1 July 2016 until 30 June 2018.

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