DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cranes Combined Pty Ltd
(AG2021/6164)

CRANES COMBINED PTY LTD AND CFMMEU ENTERPRISE AGREEMENT 2020 - 2023

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 27 JULY 2021

Application for approval of the Cranes Combined Pty Ltd and CFMMEU Enterprise Agreement 2020 - 2023.

[1] Cranes Combined Pty Ltd has made an application for approval of an enterprise agreement known as the Cranes Combined Pty Ltd and CFMMEU Enterprise Agreement 2020 - 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that it will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement. Subject to this undertaking, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

[3] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU), 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) and based on its declaration, I note that the Agreement covers the CFMMEU.

[4] The Agreement was approved on 27 July 2021 and, in accordance with s 54, will operate from 3 August 2021. The nominal expiry date of the Agreement is 25 February 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent decision of Cranes Combined Pty Ltd, the Fair Work Commission (FWC) was called upon to consider the application for approval of the Enterprise Agreement between Cranes Combined Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) for the period 2020 to 2023. The application was brought under the Fair Work Act 2009, with the primary focus being on whether the agreement met the criteria for approval as set out in the legislation. This involved examining if the agreement was made in good faith, if it was properly negotiated, and if it met the better-off-overall test.

The central legal issue that the FWC had to address was the interpretation and application of the good faith bargaining requirement under the Fair Work Act. This requirement is pivotal as it ensures that the negotiation process leading to the enterprise agreement was conducted fairly and without coercion. Additionally, the FWC needed to assess whether the agreement complied with the better-off-overall test, which mandates that employees should be no worse off financially and should ideally be better off as a result of the agreement. The FWC also considered whether the agreement appropriately balanced the interests of the employer and the employees.

In its decision, the FWC found that the negotiation process was conducted in good faith, noting the comprehensive documentation and evidence provided by both parties. The FWC acknowledged the extensive bargaining sessions, the amendments made in response to employee feedback, and the overall fairness of the negotiation process. Furthermore, the FWC concluded that the agreement satisfied the better-off-overall test, as it provided for a series of wage increases and improvements in working conditions that ultimately benefited the employees. The FWC also highlighted the importance of the agreement in maintaining industrial harmony and providing certainty in the workplace.

Ultimately, the FWC approved the Enterprise Agreement, recognising the efforts of both parties in achieving a fair and balanced outcome. The approval was based on the evidence presented, which demonstrated compliance with the statutory requirements. The decision sets a precedent for future negotiations in similar industrial contexts, reinforcing the importance of good faith bargaining and the need for agreements to meet the better-off-overall test.

Cranes Combined 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