Vaughan Constructions Pty Ltd Summary

[2022] FWCA 4120

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Vaughan Constructions Pty Ltd

(AG2022/4739)

Vaughan Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2020-2023

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 24 NOVEMBER 2022

Application for approval of the Vaughan Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the Vaughan Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) 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 Vaughan Constructions 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.

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.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 December 2022. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Vaughan Constructions Pty Ltd and the CFMEU (Victorian Construction and General Division) applied for approval of an enterprise agreement. The agreement was for the period 2020 to 2023 and involved various terms and conditions for employees within the construction industry. The primary legal issues that arose centred on whether the agreement met the criteria for approval under the Fair Work Act 2009, specifically if it was made in good faith and provided for the proper management and proper operation of the enterprise. The Commission also had to consider if the agreement was in the best interests of the employees and the broader community.

The Commission examined whether the agreement was genuinely negotiated between the parties and if it addressed the needs of both employers and employees. It assessed if the agreement included provisions that were fair and reasonable, such as those relating to pay, hours of work, and dispute resolution mechanisms. The Commission also evaluated if the agreement provided for the proper management and operation of the enterprise and if it was consistent with the principles of the Fair Work Act. After reviewing the submissions and evidence, the Commission found that the agreement met the necessary criteria and was in the best interests of the parties involved.

Consequently, the Fair Work Commission approved the enterprise agreement, confirming that it complied with the relevant statutory requirements. The decision emphasised the importance of good faith negotiations and the mutual benefits derived from the agreement for both employers and employees. The approval of the agreement was intended to provide stability and clarity in the workplace, facilitating better industrial relations within the construction industry. The decision also highlighted the Commission's role in ensuring that enterprise agreements contribute positively to the overall objectives of the Fair Work Act.

Vaughan Constructions Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established