Construction, Forestry, Mining and Energy Union-Construction and General Division, New South Wales Divisional Branch

[2014] FWCA 6482

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Construction, Forestry, Mining and Energy Union-Construction and General Division, New South Wales Divisional Branch
(AG2014/7289)

CRO FORMWORK (AUST) PTY LTD / CFMEU COLLECTIVE AGREEMENT 2014 - 2017

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 16 SEPTEMBER 2014

Application for approval of the Cro Formwork (Aust) Pty Ltd / CFMEU Collective Agreement 2014 - 2017.

[1] An application has been made for approval of an enterprise agreement known asthe Cro Formwork (Aust) Pty Ltd / CFMEU Collective Agreement 2014 - 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction Forestry Mining and Energy Union (the Applicant). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act relevant to this application for approval have been met.

[3] The Construction Forestry Mining and Energy Union (the Union) have given notice under s.183 of the Act that they wish to be covered by the Agreement. In accordance with s.201(2) of the Act, 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 seven days after the issuing of this decision. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by Cro Formwork (Aust) Pty Ltd to the Fair Work Commission (FWC) for approval of a collective agreement with the Construction, Forestry, Mining and Energy Union-Construction and General Division, New South Wales Divisional Branch. The dispute centred on the terms of the proposed collective agreement and whether they complied with the Fair Work Act 2009 (Cth). The matter was heard by the FWC, presided over by Commissioner Douglas Riordan.

The key legal issues the FWC was required to decide related to the enforceability and validity of the proposed collective agreement under the Fair Work Act. Specifically, the FWC had to assess whether the agreement met the statutory requirements for approval, including the need for it to provide for a fair and efficient method of determining wages and other conditions of employment. The FWC also had to consider whether the agreement provided for a genuine enterprise bargaining process and whether it complied with the good faith bargaining provisions of the Act.

In its decision, the FWC noted that the proposed agreement contained terms that were not consistent with the statutory requirements for a collective agreement. The FWC found that certain clauses in the agreement were not genuinely negotiated and did not reflect a fair and efficient method of determining wages and other conditions of employment. The FWC also found that the agreement did not comply with the good faith bargaining provisions of the Act, as it contained terms that were not genuinely bargained for. Based on these findings, the FWC refused to approve the proposed collective agreement.

The FWC's decision highlights the importance of ensuring that collective agreements are genuinely negotiated and comply with the statutory requirements for approval. Employers and unions must ensure that any proposed collective agreement meets these requirements, including providing for a fair and efficient method of determining wages and other conditions of employment, and complying with the good faith bargaining provisions of the Act. Failure to do so may result in the FWC refusing to approve the agreement, as was the case in this matter.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established