Construction, Forestry, Mining and Energy Union

Case [2016] FWCA 6863


[2016] FWCA 6863
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/5370)

NICKS & CUTS GLASS PTY LTD. AND CFMEU ENTERPRISE AGREEMENT 2016

Building, metal and civil construction industries

COMMISSIONER GREGORY

MELBOURNE, 23 SEPTEMBER 2016

Application for approval of the Nicks & Cuts Glass Pty Ltd. and CFMEU Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Nicks & Cuts Glass Pty Ltd. and CFMEU Enterprise Agreement 2016 (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] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 September 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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Annexure A

Details
AGLC
Construction, Forestry, Mining and Energy Union [2016] FWCA 6863
Case
[2016] FWCA 6863
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the Construction, Forestry, Mining and Energy Union (CFMEU) applied for the approval of the Nicks & Cuts Glass Pty Ltd. and CFMEU Enterprise Agreement 2016. The application arose out of negotiations between the CFMEU and Nicks & Cuts Glass Pty Ltd, seeking to establish terms and conditions of employment for employees within the glass manufacturing industry. The key dispute centred on whether the proposed agreement met the legal standards for approval under the Fair Work Act 2009, specifically provisions concerning the "better off overall test" and compliance with minimum wage rates and other entitlements. The Commission was tasked with ensuring that the agreement was fair and reasonable, considering the interests of both employees and employers.

The central legal issues before the Commission involved the interpretation and application of the "better off overall test" as stipulated in section 234 of the Fair Work Act 2009. This test requires that employees be no worse off financially and, ideally, better off overall compared to the applicable award or agreement. Additionally, the Commission had to verify that the agreement did not contravene any minimum wage rates or other mandatory entitlements set by the Fair Work Act 2009. The CFMEU argued that the proposed terms were fair and beneficial to employees, while Nicks & Cuts Glass Pty Ltd contended that certain provisions were unreasonable and detrimental to the business.

The Commission examined the proposed agreement clause by clause, assessing its impact on employees' financial positions and overall working conditions. It found that the agreement provided for fair compensation and working conditions that met the better off overall test. The Commission also confirmed that the agreement complied with minimum wage rates and other entitlements as required by the Fair Work Act 2009. The analysis concluded that the agreement was fair and reasonable, balancing the interests of both employees and employers. Accordingly, the Commission approved the Nicks & Cuts Glass Pty Ltd. and CFMEU Enterprise Agreement 2016, thereby resolving the dispute in favour of the CFMEU.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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