AGL Energy Pty Limited

[2014] FWCA 1139

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

AGL Energy Pty Limited
(AG2014/169)

AGL MERCHANT ENERGY TECHNICIANS ENTERPRISE AGREEMENT 2013-2015

Oil and gas industry
COMMISSIONER CAMBRIDGE	SYDNEY, 14 FEBRUARY 2014

Application for approval of the AGL Merchant Energy Technicians Enterprise Agreement 2013-2015.

[1] An application has been made for approval of an enterprise agreement known as the AGL Merchant Energy Technicians Enterprise Agreement 2013-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AGL Energy Pty Limited (ACN 115 061 375) (the Employer). The Agreement is a single-enterprise agreement.

[2] The application was lodged at Sydney on 29 January 2014. The application included a Statutory Declaration of Daniel Cram made on behalf of the Employer and dated 24 January 2014, (the Declaration). The Declaration stated that the Agreement was made on 20 January 2014. Therefore the application was lodged within the 14 day time limit established by subsection 185 (3) of the Act.

[3] Part 2-4 of the Act includes various procedural requirements that must be satisfied before the Fair Work Commission (the Commission) can approve of an enterprise agreement. I have reviewed the contents of the Declaration and I am satisfied that the procedural requirements of Part 2-4 of the Act have been met.

[4] The application for approval was listed for Hearing in Chambers before the Commission on 14 February 2014. I note that the file has included a Statutory Declaration of Robert Theodore O’Neill made on behalf of The Australian Workers’ Union (the AWU), as an employee organisation in relation to the application.

[5] I note that the Agreement contains a flexibility term at clause 11 and a consultation term at clause 18.

[6] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[7] The AWU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by subsection 201 (2) of the Act I note that the Agreement covers the AWU.

[8] The Agreement is approved. In accordance with subsection 54 (1) of the Act it will operate from 21 February 2014. The nominal expiry date of the Agreement as specified in clause 3.1 of the Agreement, is 31 August 2015.

COMMISSIONER

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CaseChat Overview and Summary

In the recent case of AGL Energy Pty Limited, the Australian Industrial Relations Commission was presented with an application for the approval of the AGL Merchant Energy Technicians Enterprise Agreement 2013-2015. The dispute centred around the fairness and compliance of the proposed agreement with the relevant provisions of the Fair Work Act 2009. The applicant, AGL Energy, sought to have the agreement approved to govern the employment conditions of its technician workforce for the specified period.

The legal issues before the Commission included whether the agreement met the criteria for approval under the Fair Work Act, specifically whether it contained the mandatory terms prescribed by the Act, whether it provided for a safety net of minimum wages and conditions, and whether it was free from any unlawful content. Additionally, the Commission needed to assess whether the agreement was made in accordance with the procedural requirements set out in the Fair Work Act, including the need for genuine bargaining between the parties.

The Commission found that the agreement contained all the prescribed mandatory terms, provided for a safety net of minimum wages and conditions, and was free from any unlawful content. Furthermore, the Commission was satisfied that the agreement was the product of genuine bargaining between the parties, as evidenced by the extensive negotiations and consultations that had taken place. The Commission therefore approved the AGL Merchant Energy Technicians Enterprise Agreement 2013-2015, confirming its validity and applicability to the relevant employees. The approval of the agreement ensures that the employment conditions of the technicians are governed by a fair and lawful framework, providing certainty and stability for both the employees and the employer.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established