DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/5760)

CONTRACT HOIST AND RIGGING PTY LTD AND THE CFMEU MOBILE CRANE HIRING INDUSTRY ENTERPRISE AGREEMENT 2016-2019

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 22 SEPTEMBER 2016

Application for approval of the CONTRACT HOIST AND RIGGING PTY LTD and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the CONTRACT HOIST AND RIGGING PTY LTD and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019 (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 29 September 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission heard an application for approval of a proposed enterprise agreement between Contract Hoist and Rigging Pty Ltd and the Construction, Forestry, Mining and Energy Union. The agreement, known as the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019, was the subject of a dispute between the employer and the union. The Commission was tasked with determining whether the agreement met the requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement was consistent with the provisions of the Fair Work Act and whether it complied with the "better off overall test" (BOOT). This test requires that the agreement must provide employees with no less than the applicable award or registered agreement terms and conditions, and be better off overall for the employees. The Commission also needed to consider whether the agreement complied with the "in good faith" requirement, which mandates that the agreement must have been negotiated in good faith.

The Commission found that the agreement was consistent with the Fair Work Act and met the BOOT. The proposed agreement provided employees with terms and conditions that were no less than the applicable award, and in many cases, were better. The Commission determined that the agreement was negotiated in good faith, as evidenced by the extensive negotiations between the parties and the inclusion of various protections and benefits for employees. Consequently, the Commission approved the proposed agreement, subject to certain conditions and modifications.

The Fair Work Commission approved the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019, subject to the conditions and modifications outlined in the decision. The approval ensures that the employees of Contract Hoist and Rigging Pty Ltd will benefit from the agreed-upon terms and conditions, which are better than or at least equivalent to the applicable award or registered agreement. The decision reinforces the importance of good faith negotiations and the application of the BOOT in the approval of enterprise agreements under the Fair Work Act.

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