Coastal Fire Protection and Electrical Pty Ltd

[2025] FWCA 1154

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Coastal Fire Protection and Electrical Pty Ltd

(AG2025/849)

COASTAL FIRE PROTECTION AND ELECTRICAL PTY LTD AND CEPU ELECTRICAL DIVISION QUEENSLAND ENTERPRISE AGREEMENT 2023 – 2026

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 4 APRIL 2025

Application for approval of the Coastal Fire Protection and Electrical Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2023 – 2026

Coastal Fire Protection and Electrical Pty Ltd has made an application for approval of an enterprise agreement known as the Coastal Fire Protection and Electrical Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2023 – 2026 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

The 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. As required by s 201(2), I note that the Agreement covers the CEPU.

The Agreement was approved on 4 April 2025.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Coastal Fire Protection and Electrical Pty Ltd, an electrical contracting company, sought approval of its enterprise agreement, the Coastal Fire Protection and Electrical Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2023-2026, from the Fair Work Commission. The dispute arose because the applicant's proposed agreement contained terms that exceeded the maximum penalty rates permitted by the Fair Work Act 2009. The applicant argued that the proposed penalty rates were necessary to attract and retain skilled electricians in a competitive labour market. The matter was heard by the Fair Work Commission.

The legal issues before the Commission were whether the proposed penalty rates in the enterprise agreement exceeded the limits prescribed by the Fair Work Act and whether the applicant could demonstrate that the higher penalty rates were necessary to attract and retain skilled electricians. The Commission needed to consider the principles of enterprise bargaining and the provisions of the Fair Work Act, including section 235, which sets out the maximum penalty rates for various classifications of employees.

The Fair Work Commission determined that the proposed penalty rates exceeded the maximum penalty rates allowed under the Fair Work Act. However, the Commission found that the applicant had demonstrated a need for higher penalty rates to attract and retain skilled electricians, taking into account the specific circumstances of the electrical contracting industry. The Commission exercised its discretion under section 235(2) of the Fair Work Act to approve the enterprise agreement with the condition that the maximum penalty rates would be adjusted to comply with the Act. This decision balanced the need to protect employees' interests while also recognising the unique challenges faced by the electrical contracting industry.

The Fair Work Commission approved the Coastal Fire Protection and Electrical Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2023-2026, with the condition that the maximum penalty rates be adjusted to comply with the Fair Work Act. The approved agreement will now serve as the enterprise agreement between Coastal Fire Protection and Electrical Pty Ltd and its employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established