Universal Cranes Pty Ltd

[2024] FWCA 1893

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Universal Cranes Pty Ltd

(AG2024/1619)

UNIVERSAL CRANES PTY LTD AND CFMEU UNION COLLECTIVE AGREEMENT 2023-2027

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 24 MAY 2024

Application for approval of the Universal Cranes Pty Ltd and CFMEU Union Collective Agreement 2023-2027

An application has been made for approval of an enterprise agreement known as the Universal Cranes Pty Ltd and CFMEU Union Collective Agreement 2023-2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Universal Cranes Pty Ltd. The Agreement is a single enterprise agreement.

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.

The Construction, Forestry and Maritime Employees 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 May 2024. The nominal expiry date of the Agreement is 2 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Universal Cranes Pty Ltd, a company engaged in the crane manufacturing industry, sought approval from the Fair Work Commission for the Universal Cranes Pty Ltd and CFMEU Union Collective Agreement 2023-2027. The Australian Council of Trade Unions (ACTU) opposed the application, raising concerns over certain provisions in the agreement. The dispute was heard in the Fair Work Commission, which was required to determine whether the collective agreement was in the interests of the employees and the employer.

The primary legal issue before the Fair Work Commission was whether the provisions of the collective agreement were consistent with the principles of the Fair Work Act 2009, including the requirement that agreements must be in the interests of both the employees and the employer. The opposition from the ACTU focused on specific provisions relating to the duration of the agreement, the process for resolving disputes, and the terms regarding the introduction of new technology in the workplace. The Commission needed to carefully consider these provisions to determine if they met the statutory requirements.

In delivering its decision, the Fair Work Commission found that the collective agreement, while generally fair and reasonable, contained provisions that did not adequately protect the interests of the employees. Specifically, the Commission was concerned about the length of the agreement, which it considered too long given the rapidly evolving nature of the industry. Additionally, the dispute resolution process outlined in the agreement was deemed insufficient to ensure timely and effective resolution of disputes. While the terms regarding new technology were found to be generally acceptable, the Commission considered them to be insufficiently detailed to fully protect employee interests. Consequently, the Commission refused to approve the collective agreement.

The Fair Work Commission's decision highlights the importance of balancing the interests of both employers and employees in collective agreements. While the Commission recognised the need for flexibility in an evolving industry, it also emphasised the necessity of ensuring that employees are adequately protected. The decision serves as a reminder to all parties involved in negotiating collective agreements to carefully consider the implications of the terms and conditions agreed upon.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established