Alimak Hek Pty Ltd

Case [2017] FWCA 184


[2017] FWCA 184
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Alimak Hek Pty Ltd
(AG2016/7689)

ALIMAK HEK PTY LTD & CEPU ELECTRICAL DIVISION QUEENSLAND ENTERPRISE AGREEMENT 2016 - 2018

Electrical contracting industry

COMMISSIONER ROE

MELBOURNE, 10 JANUARY 2017

Application for approval of the Alimak Hek Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2016 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Alimak Hek Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2016 - 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Alimak Hek Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[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] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 10 January 2017 and, in accordance with s.54, will operate from 17 January 2017. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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ANNEXURE A

Details
AGLC
Alimak Hek Pty Ltd [2017] FWCA 184
Case
[2017] FWCA 184
Decision Date

CaseChat Overview and Summary

The application was heard by the Fair Work Commission (FWC) and involved Alimak Hek Pty Ltd and the Communications, Electrical and Plumbing Union of Australia (CEPU). The parties sought approval of the Alimak Hek Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2016 - 2018. The dispute centred on whether the agreement met the criteria for registration under the Fair Work Act 2009, particularly in terms of its compliance with the good faith bargaining requirements and the overall fairness of its provisions.

The primary legal issue was whether the enterprise agreement had been negotiated in good faith and if it satisfied the 'better off overall test'. This involved examining the evidence provided by both parties regarding the negotiation process and the terms of the agreement. The FWC needed to ensure that the agreement was not only a product of genuine negotiation but also provided a net benefit to the employees covered by it.

The FWC found that the agreement had been negotiated in good faith and met the better off overall test. The commission was satisfied that the process involved meaningful discussions and that the terms of the agreement provided a fair outcome for the employees. The FWC noted the overall improvements in wages and conditions and concluded that the agreement was not only fair but also beneficial to the workforce. Consequently, the FWC approved the enterprise agreement for registration.

The FWC's final order was that the Alimak Hek Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2016 - 2018 be approved for registration, effective from the date of the decision. This approval meant that the terms of the agreement would govern the employment conditions of the employees covered by it for the duration of the 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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