DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cavpower Pty Ltd
(AG2018/6439)

CAVPOWER PTY LTD (BROKEN HILL) MECHANICAL TRADES ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 1 MARCH 2019

Application for approval of the Cavpower Pty Ltd (Broken Hill) Mechanical Trades Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Cavpower Pty Ltd (Broken Hill) Mechanical Trades Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cavpower Pty Ltd. 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] 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] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Construction, Forestry, Maritime, Mining and Energy Union 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.

[6] The Agreement was approved on 1 March 2019 and, in accordance with s.54, will operate from 8 March 2019. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Cavpower Pty Ltd was the subject of an application to the Fair Work Commission for the approval of a new enterprise agreement, the Cavpower Pty Ltd (Broken Hill) Mechanical Trades Enterprise Agreement 2018. The applicant, Cavpower, sought the agreement's ratification to update its terms and conditions of employment for mechanical trades employees at its Broken Hill site. The dispute arose from negotiations between Cavpower and the union representing the employees, the Electrical Trades Union of Australia, which had resulted in a proposed agreement that required formal approval by the Commission.

The primary legal issues before the Commission involved whether the proposed agreement met the criteria for approval under the Fair Work Act 2009. This included verifying that the agreement had been genuinely negotiated, that it provided for a straightforward and comprehensible terms and conditions, and that it did not adversely affect employees' job security or their ability to access dispute resolution processes. Additionally, the Commission considered whether the agreement complied with the better off overall test, ensuring that employees were not disadvantaged by the new terms compared to their previous conditions.

The Commission found that the proposed agreement had been genuinely negotiated and met the statutory requirements for approval. It concluded that the agreement provided for clear and comprehensible terms and conditions, did not adversely affect employees' job security, and allowed for effective dispute resolution processes. The Commission also determined that the agreement satisfied the better off overall test, as it provided for improvements in pay and conditions for the employees, thereby benefiting them overall. Consequently, the Commission approved the Cavpower Pty Ltd (Broken Hill) Mechanical Trades Enterprise Agreement 2018.

Cavpower Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established