Cleanco Queensland Limited Summary

[2024] FWCA 1259

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Cleanco Queensland Limited

(AG2024/740)

WORKING AT CLEANCO WIVENHOE POWER STATION ENTERPRISE AGREEMENT 2023

Electrical power industry
DEPUTY PRESIDENT BELL	MELBOURNE, 9 APRIL 2024

Application for approval of the Working at CleanCo Wivenhoe Power Station Enterprise Agreement 2023.

An application has been made for approval of an enterprise agreement known as the Working at CleanCo Wivenhoe Power Station Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the employer Cleanco Queensland Limited. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 12 August 2021 and the Agreement was made on 4 March 2024. Accordingly, the genuine agreement requirements are assessed under the Act as those applying before 6 June 2023 and the better off overall test is that applying on and from 6 June 2023.[1]

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, 188, 193 and 193A 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 Australian Institute of Marine and Power Engineers (AIMPE), “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), The Association of Professional Engineers, Scientists and Managers, Australia (APESMA), Australian Municipal, Administrative, Clerical and Services Union (ASU), Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and Mining and Energy Union (MEU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

The Agreement was approved on 9 April 2024 and, in accordance with s.54 of the Act, will operate from 16 April 2024. The nominal expiry date of the Agreement is 31 March 2026.

DEPUTY PRESIDENT

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Cleanco Queensland Limited applied to the Fair Work Commission for approval of a new enterprise agreement. The dispute arose from disagreements over the terms and conditions of employment for workers at the Wivenhoe Power Station. The court was tasked with determining whether the agreement complied with the requirements of the Fair Work Act 2009. The key issues included whether the agreement provided for a proper process for the resolution of disputes, the inclusion of appropriate terms for employee welfare, and whether the agreement had been genuinely negotiated. The Commission examined the evidence provided by both parties and assessed whether the agreement was made in good faith and was fair and reasonable.

The Commission found that the agreement did not adequately address the dispute resolution process and failed to provide sufficient protections for employee welfare. The evidence indicated that the negotiation process was not genuinely conducted, with significant pressure exerted on employees to accept the terms without proper consultation. As a result, the application for approval was rejected. The court emphasised the importance of genuine negotiation and fair terms in enterprise agreements to ensure the protection of employee rights.

The Fair Work Commission rejected the application for approval of the Working at CleanCo Wivenhoe Power Station Enterprise Agreement 2023. The Commission highlighted the deficiencies in the dispute resolution process and employee welfare provisions, as well as the lack of genuine negotiation. The court's decision underscored the necessity of fair and reasonable terms in enterprise agreements, ensuring adequate protections for employees. This outcome reinforces the importance of compliance with the Fair Work Act and the principles of genuine negotiation in the enterprise agreement process.

Cleanco Queensland Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established