DECISION

Fair Work Act 2009
s.185—Enterprise agreement

VEC Plant and Equipment
(AG2019/2699)

VEC PLANT AND EQUIPMENT PTY LTD VICTORIA CIVIL CONSTRUCTION CFMMEU AGREEMENT 2018

Building, metal and civil construction industries
DEPUTY PRESIDENT YOUNG	MELBOURNE, 4 SEPTEMBER 2019

Application for approval of the VEC Plant and Equipment Pty Ltd Victoria Civil Construction CFMMEU Agreement 2018.

[1] VEC Plant and Equipment (the Employer) has made an application for approval of a greenfields agreement known as the VEC Plant and Equipment Pty Ltd Victoria Civil Construction CFMMEU Agreement 2018 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. 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. In accordance with s 187(5)(a) of the Act, I am satisfied that the Construction, Forestry, Maritime, Mining and Energy Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. In accordance with s.191(2) of the Act, the undertaking is taken to be a term of the Agreement.

[4] I observe that clause 16.4 and clause 17 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting the undertaking provided by the Employer, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] Pursuant to s 53(2)(b) of the Act I note the Agreement was made with the Construction, Forestry, Maritime, Mining and Energy Union and that the Agreement covers this organisation.

[6] The Agreement was approved on 4 September 2019 and, in accordance with s 54, will operate from 11 September 2019. The nominal expiry date of the Agreement is 31 March 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, VEC Plant and Equipment Pty Ltd applied for the approval of the VEC Plant and Equipment Pty Ltd Victoria Civil Construction CFMMEU Agreement 2018. The applicant, a civil construction company, entered into the agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) to govern the terms and conditions of employment for its employees. The union sought approval of the agreement under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the agreement met the criteria for registration under section 232 of the Fair Work Act. The applicant argued that the agreement was a good faith bargaining outcome and covered all relevant matters. The union also asserted that the agreement had been negotiated in good faith and was fair and reasonable. The applicant and the union both sought to establish that the agreement was in the best interests of the employees.

The Commission considered the principles of good faith bargaining and the requirements for approval of an enterprise agreement. The Commission found that the agreement had been negotiated in good faith and was a genuine outcome of bargaining between the parties. The Commission also found that the agreement contained all the necessary provisions and was fair and reasonable. The Commission was satisfied that the agreement was in the best interests of the employees and met the criteria for registration. The Commission approved the agreement.

The Fair Work Commission approved the VEC Plant and Equipment Pty Ltd Victoria Civil Construction CFMMEU Agreement 2018. The agreement will now govern the terms and conditions of employment for the employees of the applicant. The applicant and the union must comply with the agreement, and any disputes arising from the agreement must be resolved in accordance with the procedures set out in the agreement.

VEC Plant and Equipment

DECISION

Annexure A

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established