Kapitol Group Constructions Pty Ltd Summary

[2024] FWCA 3564

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Kapitol Group Constructions Pty Ltd

(AG2024/3763)

KAPITOL GROUP CONSTRUCTIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) BUILDER ENTERPRISE AGREEMENT 2024 - 2027

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 10 OCTOBER 2024

Application for approval of the Kapitol Group Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2024 - 2027

Kapitol Group Constructions Pty Ltd has made an application for approval of an enterprise agreement known as the Kapitol Group Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2024 - 2027 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

While the application is generally in order, the notice of employee representational rights that was given to employees was not in the prescribed form. However, I am satisfied that this constitutes a minor procedural or technical error for the purposes of s 188(5)(a) and that the employees covered by the Agreement are not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188 of the Act.

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 and 188 as are relevant to this application for approval has been met.

The CFMEU, being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by s 201(2), I note that the Agreement covers the CFMEU.

The Agreement was approved on 10 October 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Kapitol Group Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division). The dispute centred around the application for approval of their proposed enterprise agreement, the Kapitol Group Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2024 - 2027. The matter was brought before the Fair Work Commission (FWC), which has jurisdiction over such applications under the Fair Work Act 2009.

The central legal issues revolved around whether the proposed agreement met the requirements for approval under the Fair Work Act, including whether it provided for fair and reasonable terms and conditions, and whether it complied with the "better off overall test" (BOOT). This test requires that the proposed agreement be at least as good as the applicable award or existing enterprise agreement for employees who are covered by it.

The FWC considered the submissions from both parties and the broader context of the industry. The Commission determined that the proposed agreement was fair and reasonable, and met the BOOT. The FWC found that the agreement provided for terms and conditions that were no worse than those under the applicable award, and in some cases, were better. It also considered the views of employees and the overall impact on the industry, concluding that the agreement was likely to promote harmonious, productive and cooperative workplace relations.

As a result, the FWC approved the Kapitol Group Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Builder Enterprise Agreement 2024 - 2027. The agreement now serves as the binding contract between the parties for the specified period.

Kapitol Group Constructions Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established