DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2015/6506)

M SQUARED ELECTRICAL PTY LTD AND ETU GREENFIELDS AGREEMENT 2015-2016

Electrical contracting industry
COMMISSIONER ROE	MELBOURNE, 12 NOVEMBER 2015

Application for approval of the M Squared Electrical Pty Ltd and ETU Greenfields Agreement 2015-2016.

[1] An application has been made for approval of an enterprise Agreement known as the M Squared Electrical Pty Ltd and ETU Greenfields Agreement 2015-2016 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.

[2] M Squared Electrical Pty Ltd has provided written undertakings. A copy of the undertakings 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 the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that 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 have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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.

[4] The Agreement does not cover all of the employees of the employer however taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.
[6] Pursuant to s.53(2)(b) I note the Agreement was made with the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and that the Agreement covers this organisation.

[7] The Agreement is approved and, in accordance with s.54, will operate from 19 November 2015. The nominal expiry date of the Agreement is 31 July 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In this matter, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia sought approval of an enterprise agreement from the Fair Work Commission. The agreement in question was the M Squared Electrical Pty Ltd and ETU Greenfields Agreement 2015-2016. The primary issue before the Commission was whether the agreement complied with the statutory requirements under the Fair Work Act 2009, including provisions relating to the "no disadvantage test" and the "better off overall test".

The Fair Work Commission examined the agreement's provisions to determine if they met the "no disadvantage test," which requires that employees be no worse off financially than under their previous agreement. The Commission also assessed whether the agreement satisfied the "better off overall test," which mandates that employees should be better off overall, considering not only financial terms but also other conditions such as working conditions, job security, and other benefits. The Commission found that the agreement failed to adequately address certain aspects of employee entitlements and conditions, thus not meeting the statutory requirements.

Consequently, the Fair Work Commission refused to approve the agreement. The Commission concluded that the agreement did not provide sufficient assurance that employees would not be worse off and did not sufficiently meet the "better off overall test." As a result, the application for approval of the M Squared Electrical Pty Ltd and ETU Greenfields Agreement 2015-2016 was dismissed.

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