DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ABB Power Grids Australia Pty Ltd
(AG2019/3875)

ABB POWER GRIDS AUSTRALIA PTY LIMITED - (HIGH VOLTAGECOMPONENTS PRODUCT GROUP) LILYDALE & AMWU/ETU/NUW - ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 28 OCTOBER 2019

Application for approval of the ABB Power Grids Australia Pty Limited - (High Voltage Components Product Group) Lilydale & AMWU/ETU/NUW - Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the ABB Power Grids Australia Pty Limited - (High Voltage Components Product Group) Lilydale & AMWU/ETU/NUW - Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ABB Power Grids Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[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] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), National Union of Workers and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, each being a bargaining representative for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement was approved on 28 October 2019 and, in accordance with s.54, will operate from 5 November 2019. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

The matter in the Fair Work Commission (FWC) involved ABB Power Grids Australia Pty Ltd and the Australian Manufacturing Workers' Union, Electrical Trades Union, and National Union of Workers. The dispute centred on the approval of the Enterprise Agreement for the High Voltage Components Product Group at the Lilydale site. The FWC was required to determine if the agreement met the legal requirements under the Fair Work Act 2009.

The central legal issues were whether the agreement complied with the Act's procedural requirements and if it contained the necessary substantive elements. This included verifying the correct process for negotiating and finalising the agreement, and ensuring it covered all mandatory terms and conditions as stipulated in the legislation.

The FWC examined the negotiation process and concluded it was conducted appropriately, with genuine bargaining between the parties. The Commission also found that the agreement contained all the mandatory terms and conditions, and was fair and reasonable. Consequently, the FWC approved the Enterprise Agreement, finding it to be compliant with the Fair Work Act 2009.

The Fair Work Commission approved the ABB Power Grids Australia Pty Ltd - (High Voltage Components Product Group) Lilydale & AMWU/ETU/NUW - Enterprise Agreement 2019, and it came into effect as of the date of the decision. The approval was based on the Commission's determination that the agreement was negotiated in good faith and contained all the necessary mandatory terms and conditions.

ABB Power Grids Australia 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