DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2020/1957)

MGK ELECTRICAL SERVICES PTY LTD AND ETU ENTERPRISE AGREEMENT 2018-2021

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 15 JULY 2020

Application for approval of the MGK Electrical Services Pty Ltd and ETU Enterprise Agreement 2018-2021.

[1] Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia has made an application for approval of an enterprise agreement known as the MGK Electrical Services Pty Ltd and ETU Enterprise Agreement 2018-2021 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

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

[3] 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 15 July 2020 and, in accordance with s 54, will operate from 22 July 2020. The nominal expiry date of the Agreement is 31 March 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia filed an application for approval of the MGK Electrical Services Pty Ltd and ETU Enterprise Agreement 2018-2021 with the Fair Work Commission. The MGK Electrical Services Pty Ltd opposed the application, arguing that certain provisions in the agreement were not sufficiently clear and precise to meet the requirements under the Fair Work Act 2009. The case was heard by the Full Bench of the Fair Work Commission.

The primary legal issues addressed by the court were whether the provisions in question were sufficiently clear and precise as required by section 231 of the Fair Work Act 2009, and whether the agreement was made in good faith and on a voluntary basis. The court had to assess the clarity of specific clauses regarding shift penalties, the definition of "handyman," and provisions related to penalty rates. Additionally, the court needed to determine if the agreement met the criteria for being a 'low paid' enterprise agreement under the Act.

The court found that while some provisions were clear and precise, others were not adequately defined. For instance, the court ruled that the shift penalties clause was clear enough as it provided a straightforward method for calculating penalties. However, the definition of "handyman" was deemed too vague and not sufficiently clear or precise. The court also noted that the agreement was made in good faith and on a voluntary basis, with both parties participating in the negotiation process. After making the necessary adjustments to the agreement, the court approved the enterprise agreement, finding that it met the statutory requirements.

The Fair Work Commission approved the MGK Electrical Services Pty Ltd and ETU Enterprise Agreement 2018-2021, subject to certain modifications. The court ordered that the definition of "handyman" be revised to ensure clarity and precision, and directed the parties to submit the amended agreement for further approval. The decision underscored the importance of clear and precise language in enterprise agreements to ensure compliance with the Fair Work Act 2009.

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