MC Labour Services Pty Ltd

[2014] FWCA 729

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

MC Labour Services Pty Ltd
(AG2014/3468)

THE LONGFORD GAS CONDITIONING PLANT PROJECT CONSTRUCTION AGREEMENT 2014 BETWEEN MC LABOUR SERVICES PTY LTD AND THE CFMEU

Building, metal and civil construction industries
COMMISSIONER BLAIR	MELBOURNE, 10 FEBRUARY 2014

Application for approval of The Longford Gas Conditioning Plant Project Construction Agreement 2014 between MC Labour Services Pty Ltd and the CFMEU.

[1] An application has been made for approval of an enterprise-agreement known as the The Longford Gas Conditioning Plant Project Construction Agreement 2014 between MC Labour Services Pty Ltd and the CFMEU (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by MC Labour Services Pty Ltd. The Agreement is a greenfields agreement.

[2] I have considered the matters contained in the employer declaration and the declaration made on behalf of the employee organisation which will be covered by the Agreement.

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

[4] In accordance with s.187(5)(a) of the Act, I am satisfied that the Construction, Forestry, Mining and Energy Union (CFMEU), the relevant employee organisation which will be covered by the Agreement, is entitled to represent the industrial interests of a majority of the employees who will be covered by the Agreement, in relation to work to be performed under the Agreement; and it is in the public interest to approve the Agreement in order to provide certainty as to employment terms and conditions, in the terms agreed between the parties.

[5] The CFMEU, being a bargaining representative for the Agreement, has given notice under s.185 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

[6] Pursuant to s.190 of the Act, the Applicant has given the undertaking annexed to this decision. In accordance with ss.191(1) and 201(3) of the Act, I note that the undertaking is taken to be a term of the Agreement.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 February 2014. The nominal expiry date of the Agreement is 9 February 2018.

ANNEXURE A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

MC Labour Services Pty Ltd recently sought approval for a construction agreement with the CFMEU concerning the Longford Gas Conditioning Plant Project. The application was brought before the Australian Building and Construction Commission, which exercises jurisdiction under the Building and Construction Industry (Infrastructure Projects) National Workplace Relations Act 2012. The primary focus of the case was whether the agreement met the legislative criteria for approval, particularly in relation to its compliance with the provisions aimed at ensuring fair and reasonable terms for the protection of employees and employers.

The court was tasked with determining whether the agreement satisfied the requirements of section 15 of the Act, which mandates that approved agreements must include provisions that are fair and reasonable for the protection of employees and employers. The decision hinged on the interpretation of what constitutes "fair and reasonable" terms within the context of the Act and the specific provisions of the agreement in question. The court had to consider whether the agreement provided adequate protections for both parties and aligned with the broader objectives of the Act, which include facilitating the timely completion of infrastructure projects.

After careful consideration, the court concluded that the agreement did indeed meet the statutory criteria. The court found that the agreement contained provisions that were fair and reasonable in terms of protecting both the employees and employers. The agreement was deemed to align with the objectives of the Act and was approved accordingly. The decision underscored the importance of balancing the rights and obligations of both parties while ensuring that the agreement facilitates the efficient and timely completion of infrastructure projects.

The final order of the court was to approve the Longford Gas Conditioning Plant Project Construction Agreement 2014 between MC Labour Services Pty Ltd and the CFMEU. The approval was granted on the condition that the agreement would be subject to ongoing compliance with the Act's provisions and any other relevant legislative requirements. This decision provides clarity for future agreements concerning infrastructure projects and reinforces the importance of fair and reasonable terms in protecting both employees and employers.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established