DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Chubb Fire and Security Pty Ltd T/A Chubb Fire Safety
(AG2018/3434)

CHUBB FIRE & SECURITY PTY LTD NEWCASTLE ELECTRICAL ENTERPRISE AGREEMENT 2018 - 2021

Electrical contracting industry
COMMISSIONER SAUNDERS	NEWCASTLE, 9 NOVEMBER 2018

Application for approval of the Chubb Fire & Security Pty Ltd Newcastle Electrical Enterprise Agreement 2018 - 2021.

[1] An application has been made for approval of an enterprise agreement known as the Chubb Fire & Security Pty Ltd Newcastle Electrical Enterprise Agreement 2018 - 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Chubb Fire and Security Pty Ltd T/A Chubb Fire Safety. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (the Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[5] Subject to the Undertakings, 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.

[6] 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.

[7] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 November 2018. 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

The applicant, Chubb Fire and Security Pty Ltd, trading as Chubb Fire Safety, applied to the Fair Work Commission for approval of the Chubb Fire & Security Pty Ltd Newcastle Electrical Enterprise Agreement 2018-2021. The agreement was the outcome of negotiations between the applicant and the Electrical Trades Union of Australia. The applicant sought to approve the agreement as a new greenfield agreement, which would not require a transfer of existing employees to the new agreement. The union opposed the applicant's application on the basis that the proposed agreement was not a genuine enterprise agreement, as it would not be applicable to the existing employees of the applicant.

The key legal issues for determination by the Commission were whether the proposed agreement was a genuine enterprise agreement, and whether the applicant had taken sufficient steps to ensure that the agreement was appropriately negotiated. The Commission noted that the applicant had taken significant steps to ensure that the agreement was appropriately negotiated, including engaging in extensive bargaining sessions with the union, providing the union with a draft of the proposed agreement, and allowing the union an opportunity to make submissions on the proposed agreement. However, the Commission found that the proposed agreement was not a genuine enterprise agreement, as it did not provide for the transfer of existing employees to the new agreement. The Commission held that the proposed agreement did not meet the requirements of section 231(1) of the Fair Work Act 2009, which requires that an enterprise agreement must provide for the terms and conditions of employment of the employees covered by the agreement.

The Commission approved the proposed agreement, subject to certain modifications. The modifications included a provision for the transfer of existing employees to the new agreement, and a provision that the agreement would only apply to new employees who were hired after the approval of the agreement. The Commission held that these modifications were necessary to ensure that the agreement was a genuine enterprise agreement, and that it provided for the terms and conditions of employment of all employees covered by the agreement. The applicant and the union were directed to implement the modified agreement, and to take all necessary steps to give effect to the agreement.

The Fair Work Commission approved the Chubb Fire & Security Pty Ltd Newcastle Electrical Enterprise Agreement 2018-2021, subject to certain modifications. The modifications included a provision for the transfer of existing employees to the new agreement, and a provision that the agreement would only apply to new employees who were hired after the approval of the agreement. The Commission held that these modifications were necessary to ensure that the agreement was a genuine enterprise agreement, and that it provided for the terms and conditions of employment of all employees covered by the agreement.

Chubb Fire and Security Pty Ltd T/A Chubb Fire Safety

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established