DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Construction Zone Commercial Interiors Pty Ltd
(AG2015/2949)

CONSTRUCTION ZONE COMMERCIAL INTERIORS PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 12 JUNE 2015

Application for approval of the Construction Zone Commercial Interiors Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the Construction Zone Commercial Interiors Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Construction Zone Commercial Interiors Pty Ltd. The Agreement is a single-enterprise agreement.

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

[3] In my view, the Consultative Mechanisms provision in clause 8 of the Agreement is not a consultation term which meets the requirements of ss.205(1)(a)(ii) and (1A) of the Act, insofar as it does not include the terms concerning consultation about a change to an employee’s regular roster or ordinary hours of work. These terms were introduced into the Act by Items 20 and 21 of Part 4 (Consultation about changes to rosters or working hours) of Schedule 1 (Family–friendly measures) of the Fair Work Amendment Act 2013 (the Amendment Act).Those amendments operate in relation to an enterprise agreement that is made after the commencement of Part 4 of Schedule 1 on 1 January 2014 (See clause 5(2) of Item 1 of Schedule 7 (Application and transitional provisions) of the Amendment Act).

[4] Section 205(2) of the Act provides that if an “enterprise agreement does not include a consultation term, the model consultation term is taken to be a term of the agreement”. The model consultation term is found in Schedule 2.3 of the Fair Work Regulations 2009.

[5] As required by s.201(1)(a)(ii) of the Act, I note that the model consultation term is taken, under s.205(2), to be a term of the Agreement.

[6] 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.

[7] The Agreement is approved and, in accordance with s.54, will operate from 19 June 2015. The nominal expiry date of the Agreement is 30 October 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Construction Zone Commercial Interiors Pty Ltd applied to the Fair Work Commission for approval of an enterprise agreement. The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) opposed the application, arguing that certain provisions of the agreement were not in compliance with the Fair Work Act 2009. The court was required to determine whether the agreement met the requirements for approval under the legislation.

The central legal issue before the court was whether the contested provisions of the enterprise agreement were consistent with the provisions of the Fair Work Act. Specifically, the court had to examine whether the agreement unfairly disadvantaged employees and whether it contained appropriate dispute resolution mechanisms. The court also needed to assess if the agreement complied with the good faith bargaining requirements and whether it provided for proper consultation between the employer and the union.

The Fair Work Commission found that the contested provisions of the agreement were not unfair and did not contravene the good faith bargaining requirements. The court held that the agreement provided for adequate dispute resolution mechanisms and had been negotiated in good faith. The Commission approved the enterprise agreement, determining that it met all the necessary legal requirements for approval. Consequently, the application was successful, and the Construction Zone Commercial Interiors Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 was approved.

Construction Zone Commercial Interiors Pty Ltd

DECISION

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Legal Principle Established