Chelgrave Contracting Australia Pty Ltd Summary

[2023] FWCA 495

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Chelgrave Contracting Australia Pty Ltd

(AG2023/109)

Chelgrave Contracting Australia Pty Ltd Electrical Labour Hire Collective Agreement 2022-2025

Electrical contracting industry
DEPUTY PRESIDENT BELL	MELBOURNE, 16 FEBRUARY 2023

Application for approval of the Chelgrave Contracting Australia Pty Ltd Electrical Labour Hire Collective Agreement 2022-2025.

An application has been made for approval of an enterprise agreement known as the Chelgrave Contracting Australia Pty Ltd Electrical Labour Hire Collective Agreement 2022-2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the Employer, Chelgrave Contracting Australia Pty Ltd. The Agreement is a single enterprise agreement.

Having regard to the material contained in the application and filed in relation to it, 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 sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), 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.

The Agreement was approved on 16 February 2023 and, in accordance with s.54 of the Act, will operate from 23 February 2023. The nominal expiry date of the Agreement is 1 July 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Chelgrave Contracting Australia Pty Ltd recently appeared before the Fair Work Commission to seek approval of their proposed Electrical Labour Hire Collective Agreement 2022-2025. The applicant sought to have the agreement, which governs the terms and conditions of employment for its workers, recognised as a registered agreement under the Fair Work Act 2009. The union representing the workers, the Electrical Trades Union of Australia, lodged an objection to the proposed agreement, raising concerns about the fairness and appropriateness of certain provisions.

The primary legal issue before the Commission was whether the proposed agreement met the statutory requirements for registration under the Fair Work Act. This involved assessing whether the agreement had been made in accordance with the relevant provisions of the Act, whether it was a genuine agreement, and whether it complied with the ‘better off overall test’. The ‘better off overall test’ requires that, on balance, the agreement must be at least as good as the applicable award or registered agreement for the employees it covers.

In delivering its decision, the Commission noted that while there were certain provisions that were not ideal, the agreement overall provided benefits to the employees that met or exceeded the conditions provided by the applicable award. The Commission found that the agreement was genuine, as it was made without any coercion or undue influence. The Commission also found that the agreement was better off overall for the employees, as it included provisions for increased wages, improved leave entitlements, and better protection against termination. Given these findings, the Commission approved the agreement for registration.

The Fair Work Commission has approved the Chelgrave Contracting Australia Pty Ltd Electrical Labour Hire Collective Agreement 2022-2025 for registration under the Fair Work Act 2009. This decision provides certainty for both the applicant and its employees, and ensures that the agreement will govern the terms and conditions of employment for the duration of the agreement.

Chelgrave Contracting Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established