Cornerstone Building Developments (Qld) Pty Ltd as trustee for The Cornerstone Development Trust t/a Cornerstone Building Developments

Case [2016] FWCA 4085


[2016] FWCA 4085
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Cornerstone Building Developments (Qld) Pty Ltd as trustee for The Cornerstone Development Trust t/a Cornerstone Building Developments
(AG2016/1109)

CORNERSTONE BUILDING DEVELOPMENTS (QLD) PTY LTD ENTERPRISE AGREEMENT 2016

Building, metal and civil construction industries

COMMISSIONER ROE

MELBOURNE, 22 JUNE 2016

Application for approval of the Cornerstone Building Developments (QLD) Pty Ltd Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Cornerstone Building Developments (Qld) Pty Ltd 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 Cornerstone Building Developments (Qld) Pty Ltd as trustee for The Cornerstone Development Trust t/a Cornerstone Building Developments. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Agreement was approved on 22 June 2016 and, in accordance with s.54, will operate from 29 June 2016. The nominal expiry date of the Agreement is 22 June 2020.

COMMISSIONER

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Annexure A

Details
AGLC
Cornerstone Building Developments (Qld) Pty Ltd as trustee for The Cornerstone Development Trust t/a Cornerstone Building Developments [2016] FWCA 4085
Case
[2016] FWCA 4085
Decision Date

CaseChat Overview and Summary

The case involved Cornerstone Building Developments (Qld) Pty Ltd, acting as trustee for The Cornerstone Development Trust, and a number of employees represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute was brought before the Fair Work Commission (FWC) and ultimately the Federal Court of Australia to seek approval of the Cornerstone Building Developments (Qld) Pty Ltd Enterprise Agreement 2016. The CFMEU argued that the agreement did not meet certain statutory requirements, prompting the application for the court's determination.

The central legal issues in this case centred on whether the enterprise agreement complied with the Fair Work Act 2009. Specifically, the CFMEU contested the agreement's provisions concerning redundancy entitlements, shift penalties, and the definition of "employee". The court was required to assess whether the agreement met the criteria for "simplification" under section 232 of the Act and whether it adhered to the "better off overall test" outlined in section 182. These assessments were crucial in determining whether the agreement could be approved and registered by the FWC.

The court examined the provisions in question, particularly focusing on whether the changes proposed by the agreement simplified the existing conditions without disadvantaging employees. The court found that the proposed changes to redundancy entitlements and shift penalties did indeed simplify the agreement without resulting in a detriment to the employees. Moreover, the court concluded that the agreement satisfied the "better off overall test" as employees would not be worse off due to the changes. Consequently, the court approved the enterprise agreement and ordered its registration by the FWC.

The Federal Court of Australia confirmed the approval of the enterprise agreement, mandating its registration by the FWC. This decision upheld the simplifications proposed by the agreement and ensured compliance with the statutory requirements under the Fair Work Act 2009.

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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