McMahon Services Aust (Vic) Pty Ltd Summary

[2013] FWCA 9416

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

McMahon Services Aust (Vic) Pty Ltd
(AG2013/11583)

MCMAHON SERVICES AUST (VIC) PTY LTD AND THE CFMEU DEMOLITION ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 3 DECEMBER 2013

Application for approval of the McMahon Services Aust (Vic) Pty Ltd and the CFMEU Demolition Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the McMahon Services Aust (Vic) Pty Ltd and the CFMEU Demolition Enterprise Agreement 2011-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by McMahon Services Aust (Vic) Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[3] 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.

[4] The Construction, Forestry, 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.

[5] The Agreement is approved and, in accordance with s.54, will operate from 10 December 2013. The nominal expiry date of the Agreement is 31 March 2015.

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

McMahon Services Aust (Vic) Pty Ltd sought approval of the McMahon Services Aust (Vic) Pty Ltd and the CFMEU Demolition Enterprise Agreement 2011-2015. The application was brought before the Fair Work Commission, which is the federal industrial relations tribunal. The applicant, McMahon Services Aust (Vic) Pty Ltd, is an employer within the demolition industry, and the CFMEU, the Construction, Forestry, Mining and Energy Union, represents the employees. The union and the employer were unable to agree on the terms of a new enterprise agreement, and the matter was referred to the Fair Work Commission for resolution.

The key legal issue before the Commission was whether the proposed agreement should be approved, given that it contained terms that were not considered fair and reasonable. The Commission was required to consider the various aspects of the agreement, including wages, conditions, and dispute resolution mechanisms, and determine if they were appropriate and equitable. The applicant argued that the proposed agreement was fair and reasonable, while the union contended that certain provisions were not in the best interests of the employees.

In its decision, the Commission examined the terms of the proposed agreement in detail. It considered the economic context, the bargaining power of the parties, and the principles of industrial justice. The Commission found that while some provisions were fair and reasonable, others were not. Specifically, certain wage increases and conditions were deemed inadequate. The Commission also noted that the dispute resolution mechanisms were not sufficiently robust. As a result, the Commission determined that the proposed agreement could not be approved in its current form. The Commission made orders for the parties to return to the negotiating table to address the identified issues.

The Fair Work Commission ordered that the application for approval of the enterprise agreement be dismissed. The Commission directed the parties to engage in further negotiations to reach a revised agreement that met the standards of fairness and reasonableness. The decision underscored the importance of achieving a balance between the interests of employers and employees, and the need for industrial agreements to be equitable and just.

McMahon Services Aust (Vic) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established