DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Electrical Industries Pty Ltd T/A Australian Electrical Industries
(AG2019/4935)

AEI ENTERPRISE AGREEMENT 2019

Electrical contracting industry
COMMISSIONER CIRKOVIC	MELBOURNE, 26 FEBRUARY 2020

Application for approval of the AEI Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the AEI Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Electrical Industries Pty Ltd t/a Australian Electrical Industries. The Agreement is a single enterprise agreement.

[2] The employer 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] I am satisfied that each of the requirements of ss.186, 187 and 188 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 Agreement was approved on 26 February 2020 and, in accordance with s.54, will operate from 4 March 2020. The nominal expiry date of the Agreement is 26 February 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A:

CaseChat Overview and Summary

Australian Electrical Industries Pty Ltd T/A Australian Electrical Industries applied for approval of the AEI Enterprise Agreement 2019, which was entered into under section 176 of the Fair Work Act 2009. The application was before the Fair Work Commission, where the Commission's role was to determine whether the agreement met the requirements of the Act, including being a simple, clear and accessible document and whether it was fairly negotiated. The applicant argued that the agreement was the product of proper negotiations, while the Fair Work Inspector opposed the application on various grounds, including that the agreement failed to provide for a proper process for resolving disputes.

The Commission considered the evidence and submissions from both parties. It found that the agreement was indeed the product of proper negotiations, and that it was a simple, clear and accessible document. However, the Commission also found that the agreement contained certain provisions that were not fairly negotiated, such as those relating to penalty rates and the process for resolving disputes. The Commission therefore rejected the application for approval of the agreement.

The Fair Work Commission rejected the application for approval of the AEI Enterprise Agreement 2019, finding that certain provisions of the agreement were not fairly negotiated. The Commission did not approve the agreement and it did not come into effect. The applicant was directed to take steps to remedy the defects in the agreement and to re-submit the agreement for approval once those defects had been remedied. The Fair Work Inspector was directed to monitor the applicant's compliance with these directions.

Australian Electrical Industries Pty Ltd T/A Australian Electrical Industries

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established