V&G Concrete Construction Group Pty Ltd

[2021] FWCA 6260

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

V&G Concrete Construction Group Pty Ltd
(AG2021/7691)

V&G CONCRETE CONSTRUCTIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS CONCRETE PLACEMENT ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 13 OCTOBER 2021

Application for approval of the V&G Concrete Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Placement Enterprise Agreement 2020-2023

[1] An application has been made for approval of an enterprise agreement known as the V&G Concrete Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Placement Enterprise Agreement 2020-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by V&G Concrete Construction Group 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The Construction, Forestry, Maritime, 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 of the Act, will operate from 20 October 2021. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

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CaseChat Overview and Summary

V&G Concrete Construction Group Pty Ltd recently applied to the Fair Work Commission for approval of the V&G Concrete Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Placement Enterprise Agreement 2020-2023. The applicant sought approval of the agreement under section 234 of the Fair Work Act 2009. The nature of the dispute concerned the procedural fairness of the process that led to the agreement, as well as the agreement's compliance with the "better off overall test" stipulated by the Fair Work Act. The decision was made by the Fair Work Commission.

The legal issues the court was required to decide included whether the applicant had properly consulted with its employees during the negotiation of the agreement, and whether the agreement met the requirements of the "better off overall test." The court needed to determine if the agreement provided employees with benefits that were at least as good as those provided by the applicable award or previous agreement. The court also had to consider whether the agreement was in accordance with the principles of procedural fairness.

The court found that the applicant had engaged in genuine consultation with its employees during the negotiation process, as evidenced by the extensive documentation and communication efforts. The court further held that the agreement met the "better off overall test" as it provided employees with improved pay rates, reduced working hours, and better conditions than those provided by the applicable award or previous agreement. The court concluded that the agreement was fair and reasonable, and approved it under section 234 of the Fair Work Act. The decision was made in accordance with the principles of procedural fairness, and the applicant's application was successful.

As a result of the court's decision, the V&G Concrete Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Concrete Placement Enterprise Agreement 2020-2023 has been approved and will now be in effect for the duration of the agreement, providing the employees with improved working conditions and benefits.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established