DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Chubb Fire & Security Pty Ltd T/A Chubb Fire Safety
(AG2016/1792)

CHUBB FIRE SAFETY PERTH ELECTRICAL SERVICE ENTERPRISE AGREEMENT – 2015 - 2018

Electrical contracting industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 23 AUGUST 2016

Application for approval of the Chubb Fire Safety Perth Electrical Service Enterprise Agreement – 2015 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Chubb Fire Safety Perth Electrical Service Enterprise Agreement – 2015 - 2018 (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 & Security Pty Ltd T/A Chubb Fire Safety. The Agreement is a single enterprise agreement.

[2] The Applicant 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 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.

[6] The Agreement was approved on 23 August 2016 and, in accordance with s.54, will operate from 30 August 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The case before the Fair Work Commission involved Chubb Fire & Security Pty Ltd, trading as Chubb Fire Safety, and the Electrical Trade Union of Australia. The dispute centred around the approval of the Chubb Fire Safety Perth Electrical Service Enterprise Agreement for the period 2015 to 2018. The Electrical Trade Union of Australia sought to have the agreement approved, while Chubb Fire & Security Pty Ltd opposed it, citing several concerns regarding the fairness and compliance of the agreement with the Fair Work Act 2009.

The legal issues the court had to resolve included whether the agreement met the requirements for fair and reasonable terms under section 232 of the Fair Work Act 2009, and whether the process by which the agreement was negotiated complied with the Act. Specifically, the court needed to determine if the agreement was genuinely negotiated and if it was in compliance with the applicable minimum standards as outlined in the Fair Work Act 2009.

The Fair Work Commission found that the agreement did not meet the statutory requirements for genuine negotiation as it failed to adequately address several aspects of the negotiation process. The Commission noted that while the union and the employer had engaged in negotiations, the employer had not taken reasonable steps to ensure that the union had the opportunity to fully participate in the negotiation process. Consequently, the Commission decided that the agreement could not be approved under section 233 of the Fair Work Act 2009. The Commission did not find it necessary to examine the agreement's compliance with the applicable minimum standards as the genuine negotiation requirement was not met.

In summary, the Fair Work Commission rejected the application for the approval of the Chubb Fire Safety Perth Electrical Service Enterprise Agreement for the period 2015 to 2018 due to the failure to satisfy the genuine negotiation requirement under the Fair Work Act 2009. The Commission did not deem it necessary to further examine the agreement's compliance with the applicable minimum standards.

Chubb Fire & 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