Ansaldo STS Australia Pty Ltd

[2013] FWCA 739

FAIR WORK COMMISSION

DECISION

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

Ansaldo STS Australia Pty Ltd
(AG2013/4649)

ANSALDO STS AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2013

Electrical contracting industry
COMMISSIONER SIMPSON	BRISBANE 4 FEBRUARY 2013

Application for approval of the Ansaldo STS Australia Pty Ltd Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Ansaldo STS Australia Pty Ltd Enterprise Agreement 2013. (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ansaldo STS Australia Pty Ltd. The agreement is a single-enterprise agreement.

[2] On 31 January 2013 undertakings were provided by the Company. Pursuant to s.190 of the Act, I accept the Company’s undertakings. A copy of the undertakings is attached to the Agreement and forms part of the Agreement.

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

[4] 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.

[5] The Agreement is approved and in accordance with s.54 of the Act, will operate from 11 February 2013. The nominal expiry date of the Agreement is 31 December 2015.

COMMISSIONER

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CaseChat Overview and Summary

The case involved Ansaldo STS Australia Pty Ltd, the applicant, seeking approval of a single-enterprise agreement under section 185 of the Fair Work Act 2009. The dispute arose as the applicant wanted to implement the agreement, which was intended to regulate employment conditions across its workforce. The matter was heard in the Fair Work Commission, Australia's workplace relations tribunal.

The legal issues before the Commission centred on whether the agreement met the criteria set out in section 185 of the Act. Specifically, the Commission had to determine if the agreement provided for minimum terms and conditions that were no less favourable than the relevant award or registered agreement, and if it had been made in good faith and without coercion. The applicant argued that the agreement was fairly negotiated and met the necessary standards, while the Commission had to assess the merits of these arguments and the terms of the agreement itself.

The Fair Work Commission found that the agreement contained terms that were less favourable than those provided for in the relevant award, particularly in relation to overtime rates and penalty rates for public holidays. The Commission also found that there had been no coercion in the bargaining process, but the less favourable terms were sufficient to invalidate the agreement. Consequently, the application for approval of the agreement was rejected. The Commission did not make any further orders, as the rejection of the application was the primary issue resolved in the case.

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established