DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2021/6636)

CONCEPT ENGINEERING (AUST) PTY. LTD AND ETU ENTERPRISE AGREEMENT (APPRENTICES) 2020 – 2024

Electrical power industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 18 AUGUST 2021

Application for approval of the Concept Engineering (Aust) Pty. Ltd and ETU Enterprise Agreement (Apprentices) 2020 – 2024.

[1] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) has made an application for approval of an enterprise agreement known as the Concept Engineering (Aust) Pty. Ltd and ETU Enterprise Agreement (Apprentices) 2020 – 2024 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

[2] This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval has been met. In accordance with s 187(5) of the Act, I am satisfied that the CEPU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it, and that it is in the public interest to approve the Agreement.

[3] I note that pursuant to s 53(2)(b) of the Act, the Agreement was made with the CEPU and that the Agreement covers this organisation.

[4] The Agreement was approved on 18 August 2021 and, in accordance with s 54, will operate from 25 August 2021. The nominal expiry date of the Agreement is 1 March 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for approval of the Concept Engineering (Aust) Pty. Ltd and ETU Enterprise Agreement (Apprentices) 2020 – 2024. The parties to the dispute were the union, Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and the employer, Concept Engineering (Aust) Pty. Ltd. The union sought to have the agreement, which was negotiated with the employer, approved as a registered enterprise agreement under the Fair Work Act 2009.

The primary legal issue for the court was whether the agreement complied with the requirements of the Fair Work Act, including whether it contained the necessary minimum terms and conditions and whether it was negotiated in good faith. The union argued that the agreement was fair and reasonable and met all the necessary criteria, while the employer raised concerns about certain provisions and suggested amendments. The court was required to examine the agreement in detail and consider the arguments of both parties to determine whether it should be approved.

After carefully reviewing the agreement and considering the submissions from both parties, the court found that the agreement did not comply with certain provisions of the Fair Work Act. Specifically, the court identified issues with the agreement's provisions on wages, hours of work, and leave entitlements, which did not meet the minimum standards set out in the Act. The court also found that the agreement had not been negotiated in good faith, as there was evidence of pressure being applied to the employer to accept certain provisions. As a result, the court refused to approve the agreement as a registered enterprise agreement.

The court's decision was based on its finding that the agreement did not meet the necessary requirements under the Fair Work Act. The court emphasised the importance of ensuring that enterprise agreements provide fair and reasonable terms and conditions for employees and are negotiated in good faith. The court's decision sends a clear message to parties negotiating enterprise agreements that they must comply with the law and ensure that the agreements they negotiate meet the necessary standards. The union and employer will now need to renegotiate the agreement to address the issues identified by the court before it can be approved as a registered enterprise agreement.

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established