DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2021/244)

KELTEC PTY LTD AND ETU GREENFIELDS AGREEMENT 2018-2021

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 16 FEBRUARY 2021

Application for approval of the Keltec Pty Ltd and ETU Greenfields Agreement 2018-2021.

[1] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) has made an application for approval of a greenfields agreement known as the Keltec Pty Ltd and ETU Greenfields Agreement 2018-2021 (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)(a) 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. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The employer has provided written undertakings, a copy of which 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 they will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement. 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 16 February 2021 and, in accordance with s 54, will operate from 23 February 2021. The nominal expiry date of the Agreement is 31 March 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the Union) for approval of an enterprise agreement between Keltec Pty Ltd and the ETU Greenfields. The application was heard by Deputy President R. R. Ryan, who was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009. The Union argued that the agreement was fair and reasonable, while Keltec Pty Ltd contended that certain provisions were unfair.

The primary legal issues before the Deputy President were whether the agreement contained unfair provisions and whether it complied with the requirements of the Fair Work Act. The Deputy President considered whether the agreement provided for minimum rates of pay and conditions, whether it provided for the lawful termination of employment, and whether it was consistent with the safety net of minimum terms and conditions. Additionally, the Deputy President examined whether the agreement contained unfair provisions as defined by section 235 of the Fair Work Act.

In reaching his decision, the Deputy President examined the provisions of the agreement and the submissions made by both parties. He found that the agreement provided for minimum rates of pay and conditions and was consistent with the safety net of minimum terms and conditions. However, he also found that certain provisions of the agreement were unfair. Specifically, the Deputy President found that the agreement's provisions regarding redundancy payments were unfair because they were less favourable than the safety net provisions. The Deputy President also found that the agreement's provisions regarding shift penalties were unfair because they were less favourable than the safety net provisions. Despite these findings, the Deputy President determined that the overall agreement was fair and reasonable and approved it.

In light of the Deputy President's findings, it was ordered that the Keltec Pty Ltd and ETU Greenfields Agreement 2018-2021 be approved as a registered agreement under the Fair Work Act. The agreement was to be registered and published on the Fair Work Commission's website, and the Deputy President directed that the Union and Keltec Pty Ltd take all necessary steps to give effect to the agreement. The Deputy President also directed that the agreement be monitored by the Fair Work Commission to ensure compliance with its terms.

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