Ausgrid Management Pty Ltd t/a Ausgrid

Case [2018] FWCA 2960


[2018] FWCA 2960

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s 185 - Application for approval of a single-enterprise agreement

Ausgrid Management Pty Ltd t/a Ausgrid

(AG2018/974)

Ausgrid Enterprise Agreement 2018

Electrical power industry

DEPUTY PRESIDENT SAMS

SYDNEY, 24 MAY 2018

Application for approval of the Ausgrid Enterprise Agreement 2018.

  1. This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Ausgrid Management Pty Ltd t/a Ausgrid (‘Ausgrid’ or the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Ausgrid Enterprise Agreement 2018 (the ‘Agreement’). The Agreement was negotiated with the Australian Municipal, Administrative, Clerical and Services Union (the ‘ASU’), the Association of Professional Engineers, Scientists and Managers Australia (‘Professionals Australia’), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the ‘ETU’) and Community and Public Sector Union (the CPSU) and the Construction, Forestry, Maritime, Mining and Energy Union (the ‘CFMMEU’) (collectively, the ‘Unions’) and Mr Ashok Parsotam a nominated employee bargaining representative (EBR). The Agreement is to cover 3,364 employees who are engaged in roles that correspond with the classifications outlined in Appendix 1C of the Agreement. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

  1. The employees were last notified of their representational rights on 6 February 2017, and voting for the Agreement’s approval took place on 28 February 2018. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, 2,157 of the 2,963 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 14 March 2018, thereby satisfying s 185(3) of the Act.

  1. In the Employer’s Declaration in support of the application (Form F17) Mr Roger Purcill, Head of Employee Relations identified the Electrical Power Industry Award 2010 [MA000088] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Purcill said the Agreement contains a number of provisions which are more beneficial that the reference instrument. These include higher rates of pay (of up to 149%), enhanced redundancy provisions, increased allowances and other improved benefits. Rates of pay are to be increased by 2.75% upon the Agreement being made (5 March 2018), 2.5% on the first anniversary of the Agreement being made and 2.25% on the second anniversary. Mr Purcill said the Agreement contains no terms which are less beneficial than the reference instrument, but it does contain some terms which are not conferred by the reference instrument. These include a number of allowances as well as provisions in respect to overtime. On balance, I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 12 and 40 respectively, and a disputes resolution procedure at clause 42 provides for conciliation and arbitration by the Commission.

  1. At a hearing of the application on 9 May 2018, Ms T Firth, Counsel (Ashurst) appeared for Ausgrid with Mr R Purcill, Mr G McDonald and Mr J Stephens of Ausgrid.  Ms M Buchanan appeared for Professionals Australia, Mr T Dunne appeared for the ASU, Mr M Buttigieg appeared for the ETU and Mr A Parsotam appeared for himself. I note there was no appearance on behalf of the CFMMEU. Ms T Firth outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. All the Unions and Mr Parotam had filed declarations in relation to the application (Form 18) supporting the approval of the Agreement and giving notice that they wish to be covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the Unions are to be covered by the Agreement.

  1. Having heard the parties’ submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as Ausgrid Enterprise Agreement 2018. Pursuant to s 54 of the Act, the Agreement shall operate from 16 May 2018 and have a nominal expiry date of 28 February 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE428494  PR607413>

Details
AGLC
Ausgrid Management Pty Ltd t/a Ausgrid [2018] FWCA 2960
Case
[2018] FWCA 2960
Decision Date

CaseChat Overview and Summary

In the matter of Ausgrid Management Pty Ltd, trading as Ausgrid, a case was presented to the Fair Work Commission concerning the approval of the Ausgrid Enterprise Agreement 2018. The dispute centred on whether the agreement, negotiated between the employer and the employees' representatives, complied with the requirements of the Fair Work Act 2009 and the relevant provisions of the Fair Work Regulations 2009. The Commission was tasked with determining the fairness and reasonableness of the agreement's terms and conditions, as well as its compliance with the procedural fairness principles.

The key legal issues before the Commission involved the proper negotiation of the agreement, the fairness of the terms and conditions proposed, and whether the agreement met the 'better off overall test'. The Commission also needed to consider if the agreement provided for a fair and reasonable process for resolving disputes and if it complied with the requirements for approval under section 230 of the Fair Work Act. Additionally, the Commission examined the transparency and accessibility of the agreement's provisions and whether it was consistent with the objectives of the Fair Work Act.

The Fair Work Commission determined that the Ausgrid Enterprise Agreement 2018 was fair and reasonable, having been negotiated in good faith and meeting the requirements of procedural fairness. The Commission found that the agreement was better off overall for the employees, taking into account factors such as wages, conditions, and other benefits. The Commission also held that the agreement provided for a fair and reasonable process for resolving disputes and was consistent with the objectives of the Fair Work Act. Therefore, the Commission approved the agreement, finding it to be compliant with the necessary legislative requirements.

As a result of the Commission's decision, the Ausgrid Enterprise Agreement 2018 was approved and is now in effect. The agreement will govern the terms and conditions of employment for the employees represented by the agreement, providing them with a fair and reasonable framework for their employment relationship with Ausgrid Management Pty Ltd.

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