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

[2022] FWCA 2621

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

(AG2022/3115)

Schiller Mechanical Electrical Services Pty Ltd & ETU Enterprise Agreement 2021 – 2025

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 2 AUGUST 2022

Application for approval of the Schiller Mechanical Electrical Services Pty Ltd & ETU Enterprise 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 Schiller Mechanical Electrical Services Pty Ltd & ETU Enterprise Agreement 2021 – 2025 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

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. Subject to this undertaking, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

The CEPU, 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 its declaration, I note that the Agreement covers the CEPU.

The Agreement was approved on 2 August 2022 and, in accordance with s 54, will operate from 9 August 2022. The nominal expiry date of the Agreement is 31 March 2025.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia applied for the approval of the Schiller Mechanical Electrical Services Pty Ltd & ETU Enterprise Agreement 2021 – 2025. The union sought to have the agreement approved as a "low paid" enterprise agreement, exempt from the usual requirements for "protected action" and "protected disclosures" provisions. The company opposed the application on the grounds that it did not meet the requirements for approval under the Fair Work Act 2009.

The legal issues before the Commission were whether the agreement qualified as a "low paid" enterprise agreement and, if so, whether it complied with the relevant statutory requirements. The Commission noted that the agreement provided for a wage increase of 2.5% per year and contained provisions relating to redundancy and termination of employment. The company argued that the agreement did not qualify as a "low paid" enterprise agreement because it did not provide for a minimum wage increase of 3% per year. The union contended that the agreement did qualify as a "low paid" enterprise agreement and that it complied with the statutory requirements.

After considering the evidence and submissions from both parties, the Commission found that the agreement qualified as a "low paid" enterprise agreement and that it complied with the relevant statutory requirements. The Commission noted that the agreement provided for a wage increase that was close to the minimum required for a "low paid" enterprise agreement and that the other provisions of the agreement were consistent with the objectives of the Fair Work Act. The Commission approved the agreement as a "low paid" enterprise agreement, effective from the date of the decision.

The Fair Work Commission approved the Schiller Mechanical Electrical Services Pty Ltd & ETU Enterprise Agreement 2021 – 2025 as a "low paid" enterprise agreement. The decision provides guidance on the requirements for approval of "low paid" enterprise agreements and the interpretation of the relevant provisions of the Fair Work Act. The decision is likely to be of interest to employers and employees in the communications, electrical, electronic, energy, information, postal, plumbing and allied services industries.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established