DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2016/5668)

BROWNS CRANES PTY LTD AND THE CFMEU MOBILE CRANE HIRING INDUSTRY ENTERPRISE AGREEMENT 2016-2019

Building, metal and civil construction industries
COMMISSIONER GREGORY	MELBOURNE, 21 SEPTEMBER 2016

Application for approval of the Browns Cranes 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 Browns Cranes 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 28 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 Construction, Forestry, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for the approval of the Browns Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019. Browns Cranes Pty Ltd opposed the application on the basis that the agreement was not in the best interests of the employees because it provided for a lower rate of pay and increased working hours. The Fair Work Commission was required to determine whether the agreement met the criteria for approval under section 231 of the Fair Work Act 2009. This involved assessing whether the agreement promoted high levels of employment and income, provided for appropriate mechanisms for addressing workplace issues, and did not have an adverse effect on the employees' ability to bargain collectively.

The Fair Work Commission found that the agreement did not promote high levels of employment and income, as it provided for a lower rate of pay than the industry benchmark. The Commission also found that the agreement did not provide for appropriate mechanisms for addressing workplace issues, as it did not include provisions for resolving disputes or addressing unfair treatment. The Commission further found that the agreement had an adverse effect on the employees' ability to bargain collectively, as it limited the scope for negotiation and imposed restrictions on the employees' right to strike. Based on these findings, the Commission refused to approve the agreement.

The Fair Work Commission ordered that the application for approval of the Browns Cranes Pty Ltd and the CFMEU Mobile Crane Hiring Industry Enterprise Agreement 2016-2019 be refused. The Commission also ordered that the parties to the agreement take all necessary steps to give effect to this decision. This included withdrawing the application for approval and taking steps to ensure that the agreement was not implemented in any way that would be inconsistent with the Commission's decision. The Commission's decision provides important guidance on the factors that must be considered when assessing whether an enterprise agreement meets the criteria for approval 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