P & D Rigging & Crane Hire Pty Ltd

[2013] FWCA 9581

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

P & D Rigging & Crane Hire Pty Ltd
(AG2013/11674)

THE LONGFORD GAS CONDITIONING PLANT PROJECT CONSTRUCTION AGREEMENT BETWEEN P & D RIGGING & CRANE HIRE PTY LTD AND THE CFMEU

Building, metal and civil construction industries
COMMISSIONER BLAIR	MELBOURNE, 5 DECEMBER 2013

Application for approval of The Longford Gas Conditioning Plant Project Construction Agreement between P & D Rigging & Crane Hire Pty Ltd and the CFMEU.

[1] An application has been made for approval of an enterprise agreement known as The Longford Gas Conditioning Plant Project Construction Agreement between P & D Rigging & Crane Hire 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 P & D Rigging & Crane Hire 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 the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 December 2013. The nominal expiry date of the Agreement is 5 December 2017.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the court involved an application for the approval of a construction agreement between P & D Rigging & Crane Hire Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The agreement related to the Longford Gas Conditioning Plant Project. The primary dispute centred around whether the terms of the agreement complied with relevant industrial laws and whether the proposed work arrangement was fair and reasonable. The matter was heard in the Fair Work Commission (FWC), Australia's industrial relations tribunal.

The legal issues before the FWC included whether the terms of the construction agreement were procedurally and substantively fair and reasonable. Key considerations involved the interpretation of the applicable industrial legislation, the procedural fairness of the negotiation process, and the substantive fairness of the terms themselves, particularly in light of the nature of the construction industry and the roles of the parties involved. The court needed to ensure that the agreement did not unfairly disadvantage either party and that it complied with all relevant industrial laws.

In its decision, the FWC examined the negotiation process and the terms of the agreement in detail. The Commission found that the process was procedurally fair as it was conducted in good faith and without coercion. Regarding substantive fairness, the FWC considered the economic realities of the construction industry and the specific circumstances of the parties. The Commission concluded that the terms of the agreement were fair and reasonable, taking into account the complexities and requirements of the project. The FWC approved the construction agreement based on these findings.

The Fair Work Commission approved the Longford Gas Conditioning Plant Project Construction Agreement between P & D Rigging & Crane Hire Pty Ltd and the CFMEU, finding that the agreement was fair and reasonable and complied with all relevant industrial laws.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established