Construction, Forestry, Mining and Energy Union v One Key Workforce Pty Ltd [2017] FCA 1266

Construction, Forestry, Mining and Energy Union v One Key Workforce Pty Ltd [2017] FCA 1266

The approval of the enterprise agreement was vitiated by jurisdictional error because (a) the employer failed to take all reasonable steps to ensure the terms and effect of the agreement were explained to the relevant employees under s 180(5), and (b) there never was an agreement genuinely agreed to by the employees covered by the agreement as required by s 186(2)(a), particularly given the limited employment experience of the three employees vis-a-vis the broad coverage of the agreement.

Parties
Applicant: Construction, Forestry, Mining and Energy Union; First Respondent: One Key Workforce Pty Ltd; Second Respondent: Fair Work Commission
Jurisdiction
Australia
Judgment Date
08 November 2017
Procedural Posture
Application for Judicial Review / Judgment After Hearing
Outcome
Approval of the Agreement by the Fair Work Commission set aside; declaration that the Agreement is void and of no effect; parties to bring in Short Minutes of Orders to give effect to reasons within fourteen days; relief not refused on delay grounds.
Legal Topics
Enterprise Agreements, Judicial Review, Approval of Enterprise Agreements, Jurisdictional Error, Pre Approval Steps, Collective Bargaining
Industrial Law Employment Law Enterprise Agreements Judicial Review Approval of Enterprise Agreements Jurisdictional Error Pre Approval Steps Collective Bargaining

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Parties

Construction, Forestry, Mining and Energy Union

Applicant

One Key Workforce Pty Ltd

First Respondent

Fair Work Commission

Second Respondent

Procedural Posture

Application for Judicial Review / Judgment After Hearing

Legal Issues

  1. 1 Whether the Fair Work Commission failed to take all reasonable steps to explain the agreement under s 180(5) of the Fair Work Act 2009 (Cth)
  2. 2 Whether the agreement was genuinely agreed to by the employees covered by the agreement under s 186(2)(a)
  3. 3 Whether there was jurisdictional error by the Fair Work Commission in approving the agreement

Ratio Decidendi

The approval of the enterprise agreement was vitiated by jurisdictional error because (a) the employer failed to take all reasonable steps to ensure the terms and effect of the agreement were explained to the relevant employees under s 180(5), and (b) there never was an agreement genuinely agreed to by the employees covered by the agreement as required by s 186(2)(a), particularly given the limited employment experience of the three employees vis-a-vis the broad coverage of the agreement.

Court Disposition

Approval of the Agreement by the Fair Work Commission set aside; declaration that the Agreement is void and of no effect; parties to bring in Short Minutes of Orders to give effect to reasons within fourteen days; relief not refused on delay grounds.

Orders

  • The parties are to bring in Short Minutes of Orders to give effect to these reasons within fourteen days.