DECISION

Fair Work Act 2009
s.185—Enterprise agreement

CPB Contractors Pty Ltd
(AG2019/3422)

CPB CONTRACTORS PTY LTD CROSS RIVER RAIL - CIVIL AND SURFACE WORKS GREENFIELDS AGREEMENT 2019-2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 16 OCTOBER 2019

Application for approval of the CPB Contractors Pty Ltd Cross River Rail - Civil and Surface Works Greenfields Agreement 2019-2023.

[1] On 12 September 2019, an application was made for approval of an enterprise agreement known as the CPB Contractors Pty Ltd Cross River Rail – Civil and Surface Works Greenfields Agreement 2019-2023 (Civil and Surface Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act). It has been made by CPB Contractors Pty Ltd (CPB). The Agreement is a greenfields agreement.

[2] The Civil and Surface Agreement relates to work to be performed by CPB in relation to the Cross River Rail Project in South-East Queensland (Project). The Project is “Queensland’s highest priority infrastructure project.” 1 The Project is estimated to cost around $5.4 billion and generate 7,700 jobs during construction.

[3] Employment on the Project by CPB is awaiting approval of the Civil and Surface Agreement.

[4] Given the importance of the Project, the Commission, as presently constituted:

a) expedited the approval process of the Civil and Surface Agreement, and
b) issues this decision in advance of reasons for decision, which will follow in due course.

[5] Approval of the Civil and Surface Agreement is opposed by the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, known as the Australian Manufacturing Workers’ Union (AMWU), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) (together the Intervening Unions).

[6] Having considered:

a) the material contained in the application and accompanying statutory declarations filed by a representative of each of CPB and The Australian Workers’ Union (AWU),
b) the material filed in the matter in compliance with the Directions I issued on 30 September 2019, including, without limitation, the materials filed by the Intervening Unions, and
c) the evidence received today,

I am satisfied that each of the requirements of ss.186 and 187 of the FW Act, as are relevant to this application for approval have been met, including, without limitation, that it is in the public interest to approve the Civil and Surface Agreement.

[7] An undertaking has been given and this undertaking has become a term of the Civil and Surface Agreement in accordance with s.191(2) of the FW Act. It is appended at Annexure A.

[8] Based on the statutory declaration provided by AWU and the materials filed by it in these proceedings, I am satisfied that the AWU, the employee organisation to be covered by the Civil and Surface Agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Civil and Surface Agreement in relation to work that is to be performed under it.

[9] The Civil and Surface Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 23 October 2019. The nominal expiry date of the Civil and Surface Agreement is 15 October 2023.

COMMISSIONER

Annexure A

1 Queensland Government Media release, 20 February 2018.

Printed by authority of the Commonwealth Government Printer

CPB Contractors Pty Ltd applied for the approval of the CPB Contractors Pty Ltd Cross River Rail - Civil and Surface Works Greenfields Agreement 2019-2023. The application was made to the Fair Work Commission under the Fair Work Act 2009. The dispute arose between the applicant and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) over the terms and conditions of the proposed agreement. The CFMEU contested the application, arguing that certain provisions of the agreement were unfair or did not comply with the requirements of the Fair Work Act.

The primary legal issue before the Commission was whether the proposed agreement met the criteria for approval under section 234 of the Fair Work Act. The Commission had to determine if the agreement provided for fair and reasonable terms and conditions of employment and whether it complied with the relevant provisions of the Act. The CFMEU argued that several provisions, including those relating to overtime, shift patterns, and the use of subcontractors, were unfair and did not meet the standard set by the Act. The Commission considered the arguments from both parties and examined the provisions of the agreement in question.

In its decision, the Commission found that while some of the provisions raised concerns, the overall agreement provided for fair and reasonable terms and conditions of employment. The Commission concluded that the provisions were not so unfair as to warrant refusal of approval. The Commission considered the balance of the agreement, the parties' bargaining power, and the context in which the agreement was made. The Commission also noted that the agreement contained provisions that addressed the concerns raised by the CFMEU, such as improved shift patterns and better protections for workers.

The Fair Work Commission approved the CPB Contractors Pty Ltd Cross River Rail - Civil and Surface Works Greenfields Agreement 2019-2023, subject to certain conditions. The Commission directed that the agreement would not come into effect until certain changes were made to address specific concerns. These changes included amendments to the provisions relating to shift patterns and the use of subcontractors. The Commission also ordered that the agreement would be subject to regular review to ensure ongoing compliance with the Fair Work Act.

CPB Contractors Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established