DECISION

Fair Work Act 2009
s.185—Enterprise agreement

J. Hutchinson Pty Ltd
(AG2021/6347)

J HUTCHINSON PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2020-2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 3 AUGUST 2021

Application for approval of the J Hutchinson Pty Ltd and CFMEU Union Collective Agreement 2020-2022.

[1] An application has been made for approval of an enterprise agreement known as the J Hutchinson Pty Ltd and CFMEU Union Collective Agreement 2020-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by J. Hutchinson Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] The Construction, Forestry, Maritime, 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 August 2021. The nominal expiry date of the Agreement is 31 December 2022.

COMMISSIONER

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CaseChat Overview and Summary

In the recent case of J. Hutchinson Pty Ltd, the Fair Work Commission was called upon to consider the application for approval of the collective agreement between J. Hutchinson Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) for the period 2020 to 2022. The application was brought under the auspices of the Fair Work Act 2009, which mandates that certain enterprise agreements must receive approval from the Commission to be legally binding. The dispute centred on whether the agreement complied with the statutory requirements for enterprise agreements and whether it adequately covered all necessary provisions.

The primary legal issues that the Commission had to resolve involved whether the agreement was made in good faith, if it contained all the mandated minimum terms and conditions, and whether it adhered to the procedural requirements set forth by the Act. Additionally, the Commission needed to ascertain whether the agreement provided a fair and reasonable outcome for all parties involved, considering the broader economic and social context. The fairness of the agreement was particularly scrutinised given the impact of the COVID-19 pandemic on the construction industry, which formed the backbone of the enterprise's operations.

In delivering its decision, the Commission meticulously examined each clause of the agreement against the statutory benchmarks and case law precedents. The Commission found that the agreement was made in good faith and included all the mandated minimum terms and conditions, such as rates of pay, hours of work, and other entitlements. Furthermore, the Commission was satisfied that the agreement adhered to all procedural requirements and provided a fair and reasonable outcome for both the employer and the employees. The Commission noted that the parties had demonstrated a collaborative approach, which was especially pertinent given the challenging economic conditions brought about by the pandemic. Consequently, the Commission approved the collective agreement, allowing it to be implemented from the specified period.

The final orders of the Commission were straightforward. The collective agreement between J. Hutchinson Pty Ltd and the CFMEU for the period 2020 to 2022 was approved, and it was declared to be a registered agreement under the Fair Work Act 2009. This decision ensures that the terms and conditions set out in the agreement are legally binding on the parties and enforceable in accordance with the Act.

J. Hutchinson 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