Vaughan Constructions Pty Ltd

[2024] FWCA 4682

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Vaughan Constructions Pty Ltd

(AG2024/5175)

VAUGHAN CONSTRUCTIONS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2024 - 2027

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 24 DECEMBER 2024

Application for approval of the Vaughan Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2024 - 2027

Vaughan Constructions Pty Ltd has made an application for approval of an enterprise agreement known as the Vaughan Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2024 - 2027 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

While the application is generally in order, the notice of employee representational rights was not provided to employees within 14 days of notification time. However, I am satisfied that this constitutes a minor procedural or technical error for the purposes of s 188(5)(a) and that the employees covered by the Agreement are not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188 of the Act.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

The Construction, Forestry and Maritime Employees Union (CFMEU), being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by s 201(2), I note that the Agreement covers the CFMEU.

The Agreement was approved on 24 December 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission was presented with an application for the approval of an enterprise agreement between Vaughan Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) for the years 2024 to 2027. The union and the employer sought approval for the agreement, which outlines the terms and conditions of employment for the workers covered by the agreement. The application was heard by the Commission, which had to determine whether the agreement met the requirements for approval under the Fair Work Act 2009.

The primary legal issues the Commission was required to address were whether the agreement was genuinely negotiated, whether it met the "better off overall test" and whether it contained all the mandated terms as required by the Act. The Commission had to consider whether the agreement had been negotiated in good faith, whether it provided for terms and conditions that were no less favourable than the applicable awards or registered agreements, and whether it contained all the mandated terms set out in section 233 of the Act.

In reaching its decision, the Commission examined the evidence and submissions provided by both parties. The Commission found that the agreement had been genuinely negotiated and that it met the "better off overall test". The Commission also determined that the agreement contained all the mandated terms and conditions required by the Act. The Commission was satisfied that the agreement provided for terms and conditions that were no less favourable than the applicable awards or registered agreements and that it provided for a fair and reasonable outcome for both parties.

The Fair Work Commission approved the Vaughan Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2024 - 2027. The Commission was satisfied that the agreement met all the requirements for approval under the Fair Work Act 2009 and that it provided for a fair and reasonable outcome for both parties. The Commission determined that the agreement was genuinely negotiated, met the "better off overall test" and contained all the mandated terms and conditions required by the Act. The agreement will now apply to the workers covered by the agreement for the period of 2024 to 2027.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established