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

[2022] FWCA 1030

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

(AG2022/775)

Mech Air Pty Ltd and ETU Enterprise Agreement 2021 – 2025

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 23 MARCH 2022

Application for approval of the Mech Air Pty Ltd and 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 Mech Air Pty Ltd and 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 the undertaking referred to above, 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 23 March 2022 and, in accordance with s 54, will operate from 30 March 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

The matter before the court involved the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, who brought an application for the approval of a proposed enterprise agreement between Mech Air Pty Ltd and the Electrical Trade Union. The application was heard by the Fair Work Commission, which is responsible for approving such agreements under the Fair Work Act 2009. The union argued that the agreement met the statutory requirements for approval, while Mech Air Pty Ltd did not oppose the application, focusing instead on the union's arguments.

The central legal issue for the court was to determine whether the proposed agreement complied with the provisions of the Fair Work Act, specifically whether it met the "better off overall test" which requires that employees be at least as well off under the new agreement as they would be under their existing awards or agreements. The court also had to consider whether the agreement contained all the mandated terms and conditions, including minimum rates of pay, classification of employees, and other essential provisions.

The court found that the proposed agreement was in compliance with the statutory requirements. It contained all the necessary terms and conditions, and importantly, the union had demonstrated that the employees would be better off overall under the new agreement. The court examined the financial implications of the agreement, including wage increases and other benefits, and concluded that the employees would indeed be better off overall. The court was satisfied that the agreement was fair and met the necessary legal standards.

The Fair Work Commission approved the proposed enterprise agreement, subject to the terms and conditions outlined in the agreement. The approval was contingent on the agreement being implemented and the parties adhering to its terms. This decision ensures that the employees of Mech Air Pty Ltd will be governed by the new enterprise agreement, which provides for their terms and conditions of employment over the next four years.

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

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established