DECISION

Fair Work Act 2009
s.185—Enterprise agreement

McMahon Services Australia Pty Ltd
(AG2017/113)

MCMAHON SERVICES AUSTRALIA PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016 - 2018

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 27 JANUARY 2017

Application for approval of the McMahon Services Australia Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the McMahon Services Australia Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016 - 2018 (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 Australia 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, 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 3 February 2017. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

McMahon Services Australia Pty Ltd and the CFMEU (Victorian Construction and General Division) lodged an application for the approval of an enterprise agreement. The application was made to the Fair Work Commission, which has jurisdiction to approve such agreements under the Fair Work Act 2009. The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the statutory requirements for approval, including provisions for employee representation and procedural fairness.

The Fair Work Commission considered whether the agreement adequately provided for employee representation, particularly in relation to the establishment of a joint consultative committee. The Commission also assessed whether the agreement contained necessary provisions for procedural fairness, including the right to appeal and the opportunity for employees to be informed about the agreement. The CFMEU argued that the agreement did not sufficiently protect employee interests, while McMahon Services Australia Pty Ltd contended that the agreement was fair and met all legal requirements.

In its decision, the Fair Work Commission found that the proposed enterprise agreement did not adequately provide for employee representation through the joint consultative committee as required by the Act. Additionally, the Commission held that the agreement did not sufficiently ensure procedural fairness, particularly in relation to the right to appeal. Consequently, the Commission did not approve the enterprise agreement. The decision highlighted the importance of ensuring that enterprise agreements comply with statutory requirements to protect the interests of both employers and employees.

No final orders were made as the application for approval of the enterprise agreement was dismissed.

McMahon Services Australia 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