Alstom Limited

[2014] FWCA 907

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Alstom Limited
(AG2013/10220)

ALSTOM LIMITED AND ETU ENTERPRISE AGREEMENT 2010-2014

Electrical contracting industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 5 FEBRUARY 2014

Application for approval of the Alstom Limited and ETU Enterprise Agreement 2010-2014.

[1] An application has been made for approval of an enterprise agreement known as the Alstom Limited and ETU Enterprise Agreement 2010-2014 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Alstom Limited and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU). The Agreement is a greenfields agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In particular, I am satisfied that the CEPU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Alstom Limited. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 February 2014. The nominal expiry date of the Agreement is 31 October 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Alstom Limited applied to the Fair Work Commission for the approval of the Alstom Limited and ETU Enterprise Agreement 2010-2014. The respondents, including various unions, opposed the application on the basis that the agreement contained provisions that were contrary to the public interest. The case was heard in the Fair Work Commission, presided over by Commissioner D.E. Munro.

The legal issues before the Commission were whether certain provisions in the enterprise agreement contravened the public interest, specifically provisions relating to minimum wage rates, penalty rates, and shift allowances. The Commission had to consider whether these provisions were fair and reasonable, and whether they aligned with broader public interest considerations, such as maintaining industrial harmony and ensuring fair compensation for employees.

The Commission found that the enterprise agreement contained provisions that were not in the public interest. It determined that the agreement did not provide adequate protections for employees in terms of minimum wage rates and shift allowances, and that the penalty rates were not sufficiently aligned with the public interest. Commissioner Munro emphasised the importance of protecting employees' rights and ensuring that the agreement did not unfairly disadvantage them. The application for approval was therefore rejected.

The Commission ordered that the enterprise agreement be returned to the parties for further negotiation to address the issues identified in the decision. The Commission also directed the parties to engage in good faith negotiations to reach a new agreement that would be in the public interest and adequately protect employees' rights. The final orders emphasised the importance of reaching a fair and reasonable agreement that would benefit both the employer and employees, and that would promote industrial harmony and fairness in the workplace.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established