DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Vos Construction and Joinery Pty Ltd
(AG2014/9733)

VOS CONSTRUCTION AND JOINERY PTY LTD [CONSTRUCTION SOUTH] & CFMEU ENTERPRISE AGREEMENT 2014

Tasmania
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 5 DECEMBER 2014

Application for approval of the Vos Construction and Joinery Pty Ltd [Construction South] & CFMEU Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Vos Construction and Joinery Pty Ltd [Construction South] & CFMEU Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Vos Construction and Joinery Pty Ltd. The agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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.

[6] The Construction, Forestry, 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.

[7] The Agreement was approved on 5 December 2014 and, in accordance with s.54, will operate from 12 December 2014. The nominal expiry date of the Agreement is 21 February 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Vos Construction and Joinery Pty Ltd, along with the Construction, Forestry, Mining and Energy Union (CFMEU), applied to the Fair Work Commission for approval of their Enterprise Agreement 2014. The application was contested by the Australian Building and Construction Commission (ABCC), which argued that certain provisions of the agreement were not fair and reasonable. The dispute was heard in the Fair Work Commission, a body with jurisdiction to approve enterprise agreements under the Fair Work Act 2009.

The primary legal issue before the Commission was whether certain provisions of the Enterprise Agreement were fair and reasonable. The ABCC contended that several provisions, particularly those relating to the classification of employees, the use of labour hire, and the imposition of conditions on new employees, were not fair and reasonable. The ABCC argued that these provisions could lead to exploitation of workers, reduced job security, and unfair treatment of new employees. The applicants, on the other hand, maintained that the provisions were necessary to maintain competitive business practices and to ensure that the agreement was fair and reasonable overall.

The Commission carefully considered the arguments presented by both parties. In its decision, the Commission found that while some of the contested provisions were indeed problematic, they were not so detrimental as to render the entire agreement unfair and unreasonable. The Commission concluded that the provisions could be approved with some modifications to address the concerns raised by the ABCC. The Commission ordered amendments to certain clauses to ensure that the agreement met the statutory requirements for fairness and reasonableness. These amendments included changes to the classification of employees, restrictions on the use of labour hire, and the removal of certain conditions imposed on new employees.

Following the modifications ordered by the Commission, the Fair Work Commission approved the Enterprise Agreement 2014, subject to the specified changes. The decision underscored the importance of balancing the interests of employers and employees in the negotiation and approval of enterprise agreements. The Commission's ruling provided clarity on the types of provisions that may be contentious and highlighted the need for careful drafting to ensure compliance with the Fair Work Act.

Vos Construction and Joinery Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established