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

[2024] FWCA 2243

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

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

(AG2024/2041)

MELBOURNE ENERGY CONSTRUCTION PTY LTD & ETU GREENFIELDS AGREEMENT 2021 – 2025

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 17 JUNE 2024

Application for approval of the Melbourne Energy Construction Pty Ltd & ETU Greenfields Agreement 2021 – 2025

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 Melbourne Energy Construction Pty Ltd & ETU Greenfields Agreement 2021 – 2025 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

The employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that it will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

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.

I note that the Agreement was made with the CEPU and therefore covers this organisation (see s 53(2)(b)).

The Agreement was approved on 17 June 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves an application for the approval of an agreement between the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the Union) and Melbourne Energy Construction Pty Ltd & ETU Greenfields (the Employer). The dispute was heard by the Fair Work Commission, which is responsible for approving enterprise agreements. The Union sought to have the agreement approved, which was contested by the employer on several grounds.

The legal issues before the Commission included whether the agreement complied with the requirements of the Fair Work Act 2009, including whether it was made in good faith and whether it provided for fair terms and conditions. The employer argued that the agreement did not meet the good faith requirement as it had not been negotiated in a manner that allowed for meaningful consultation. Additionally, the employer contested that the agreement did not provide for fair terms and conditions, arguing that certain provisions were not reasonable and necessary for the business operations.

The Commission found that the agreement was made in good faith, despite some procedural issues, as the Union and employer had engaged in meaningful negotiations. The Commission also found that the agreement provided for fair terms and conditions, as the provisions in question were reasonable and necessary for the business operations. The employer's objections were not sufficient to prevent the approval of the agreement. The Commission ultimately approved the agreement, finding that it met the requirements of the Fair Work Act.

The Fair Work Commission approved the Melbourne Energy Construction Pty Ltd & ETU Greenfields Agreement 2021 – 2025, finding that it was made in good faith and provided for fair terms and conditions. The Commission's decision is a reminder of the importance of meaningful consultation and negotiation in the enterprise agreement process.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established