Aircon Rentals Pty Ltd

[2024] FWCFB 469 [Note: A copy of the zombie agreement to which this decision relates (AC310605) is available on our website.]

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 20A(4) - Application to extend default period for agreement-based transitional instruments

Aircon Rentals Pty Ltd

(AG2024/2398)

AIRCON RENTALS COLLECTIVE AGREEMENT (2007)

Electrical Contracting Industry

DEPUTY PRSIDENT WRIGHT

DEPUTY PRESDIENT ROBERTS

DEPUTY PRESIDENT SLEVIN

SYDNEY, 23 DECEMBER 2024

Application to extend the default period for Aircon Rentals Collective Agreement (2007)

Aircon Rentals Pty Ltd (the Applicant) has applied to extend the default period for the Aircon Rentals Collective Agreement (2007) (the Agreement) pursuant to subitem 20A(4) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth).

An earlier application was made to extend the default period of the Agreement. In a decision issued on 16 February 2024 the Full Bench considered that the requirements in subitem 20A(6)(a) were met as bargaining was occurring for a replacement agreement and it was appropriate in the circumstances to extend the Agreement. The Full Bench ordered that the default period for the Agreement be extended until 30 June 2024 to allow time for a replacement agreement to be made and approved.[1]

The current application, lodged on 28 June 2024, seeks to extend the Agreement until 30 September 2024, or the date which is 7 days after the Applicant’s new enterprise agreement is approved by the Fair Work Commission.

The application was made, in accordance with subitem 20A(4), on the ground that it is reasonable in the circumstances to extend the default period where an enterprise agreement has been made that covers the same employees covered by the Agreement and an application has been made to have the replacement agreement approved by the Commission under the Fair Work Act 2009.

An application to approve the replacement agreement was lodged with the Commission on 19 September 2024. At the time the current application was made, the replacement agreement had not yet been approved by the Commission.

The Commission has since approved the replacement agreement.[2] The replacement agreement commenced operation on 28 November 2024.

We are satisfied for the purpose of subitem (6)(b) that it is reasonable to extend the default period for the Agreement.

Pursuant to item 20A(4) of Sch 3 to the Transitional Act, we order that the default period for the Agreement is extended until 28 November 2024.

The Agreement is published, in accordance with subitem 20A(10A)(c), on the Fair Work Commission’s website.

DEPUTY PRESIDENT

[1] [2024] FWCFB 87.

[2] [2024] FWCA 4061.

Printed by authority of the Commonwealth Government Printer

Aircon Rentals Pty Ltd applied to the Fair Work Commission to extend the default period for the Aircon Rentals Collective Agreement (2007). This was the second application the Applicant had made to extend the default period of the Agreement, which had already been extended once previously to 30 June 2024. The Applicant sought to extend the Agreement until 30 September 2024, or until seven days after their new enterprise agreement was approved by the Commission, whichever was later. This application was made under subitem 20A(4) of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. The Commission was required to determine whether it was reasonable to extend the default period of the Agreement for a second time.

The Commission considered the Applicant's application in light of the circumstances. The Commission noted that an enterprise agreement had been made that covered the same employees as the Agreement and an application had been made to have the replacement agreement approved by the Commission under the Fair Work Act 2009. The Commission also noted that the replacement agreement had not yet been approved by the Commission at the time the current application was made, but had since been approved. The Commission found that it was reasonable to extend the default period of the Agreement for a second time, given that the replacement agreement had now been approved and had commenced operation.

The Commission ordered that the default period of the Agreement was extended until 28 November 2024, which was the date that the replacement agreement commenced operation. The Agreement was subsequently published on the Fair Work Commission’s website.

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