AC Electrics NSW Pty Ltd

Case [2020] FWCA 6478


[2020] FWCA 6478
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

AC Electrics NSW Pty Ltd
(AG2020/3118)

AC ELECTRICS NSW PTY LTD ENTERPRISE AGREEMENT 2020

Electrical contracting industry

DEPUTY PRESIDENT MANSINI

MELBOURNE, 3 DECEMBER 2020

Application for approval of the AC Electrics NSW Pty Ltd Enterprise Agreement 2020.

[1] AC Electrics NSW Pty Ltd has applied for approval of a single enterprise agreement known as the AC Electrics NSW Pty Ltd Enterprise Agreement 2020 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about whether the Agreement contravenes s.55 of the Act, contains the mandatory terms, passes the better off overall test and whether the pre-approval requirements were met. Further information was provided in relation to these concerns.

[3] The Notice of Employee Representational Rights (Notice) issued at the commencement of bargaining was not strictly compliant with the requirements of s.174 because it does not appear to have been issued within 14 days of the original notification time as required by s.173. The Notice was otherwise compliant in all respects. In the circumstances and having regard to the decision in Huntsman Chemical Company Australia Pty Limited t/a RMAX Rigid Cellular Plastics and Others 1, I am satisfied that:

  this constitutes a minor procedural or technical error for the purposes of s.188(2)(a); and
b) the employees to be covered by the Agreement were not likely to have been disadvantaged by this error.

[4] Accordingly, I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

[5] The model consultation term prescribed by the Regulations is taken to be a term of the Agreement, pursuant to s.205(2) of the Act.

[6] Noting clause 5.6 of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

[7] Written undertakings were given in accordance with s.190 of the Act and are attached at Annexure A (Undertakings) and were not opposed. 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. Pursuant to s.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

[8] As there were no bargaining representatives appointed to represent the employees to be covered by the Agreement the Commission took steps to ensure the relevant employees were served with, and has received evidence that, the employees were informed of: the application; the Commission’s concerns; the Applicant’s responses to those concerns; and were invited to express their views (including about the Undertakings) and none opposed.

[9] On the basis of the material contained in the application, further information provided on request of the Commission and the Undertakings, 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.

[10] The Agreement was approved on 3 December 2020 and, in accordance with s.54, will operate from 10 December 2020. The nominal expiry date of the Agreement is 3 December 2024.

[11] For the purposes of publication, the signature page of the Agreement has been redacted in part, for confidentiality and as the enterprise agreement when made did not contain the redacted details. 2

DEPUTY PRESIDENT

Annexure A

 1   [2019] FWCFB 318.

 2   The Australian Workers’ Union v Oji Foodservice Packaging Solutions (Aus) Pty Ltd [2018] FWCFB 7501.

Printed by authority of the Commonwealth Government Printer

<AE509688 PR725086>

Details
AGLC
AC Electrics NSW Pty Ltd [2020] FWCA 6478
Case
[2020] FWCA 6478
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved AC Electrics NSW Pty Ltd, which sought approval for the AC Electrics NSW Pty Ltd Enterprise Agreement 2020. The dispute centred around the terms of the proposed agreement and whether it complied with the necessary legislative and regulatory frameworks. The Commission was tasked with determining if the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issues that the Commission had to address were whether the agreement provided for fair and reasonable terms and conditions for the employees, and if it adhered to the provisions of the Fair Work Act. The Commission examined the fairness of the terms and conditions, the process by which the agreement was negotiated, and whether there was sufficient employee representation during the negotiation phase. The Commission also considered the implications of the agreement on the employees' entitlements and protections under the Act.

In reaching its decision, the Commission highlighted that the agreement contained provisions that were fair and reasonable, and that the negotiation process was conducted in accordance with the law. The Commission found that the agreement did not disadvantage any party and provided for appropriate terms and conditions. Consequently, the Commission approved the AC Electrics NSW Pty Ltd Enterprise Agreement 2020, finding that it complied with the necessary statutory requirements.

The Fair Work Commission's final orders were that the AC Electrics NSW Pty Ltd Enterprise Agreement 2020 be approved as a registered agreement under the Fair Work Act 2009. This decision ensures that the terms and conditions of employment for the employees of AC Electrics NSW Pty Ltd are governed by the provisions of this approved agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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