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

[2022] FWCA 955

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

(AG2022/634)

LMC Electrical Contractors Pty. Ltd. ETU Enterprise Agreement 2021 – 2025

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 18 MARCH 2022

Application for approval of the LMC Electrical Contractors 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 LMC Electrical Contractors 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. Although the undertaking ensures only that the relevant apprentice rate of pay will not be less than the Award, the Agreement provides for various other benefits, including income protection, such that apprentices, like all other employees, will be better off overall if the Agreement applied to them than if the Award were to apply.

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 18 March 2022 and, in accordance with s 54, will operate from 25 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

In the matter of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, the applicant sought approval of the LMC Electrical Contractors Pty. Ltd. ETU Enterprise Agreement 2021 – 2025. The union aimed to have the agreement ratified under the Fair Work Act 2009. The dispute centred on the fairness and compliance of the agreement's terms and conditions for employees in the electrical contracting industry.

The primary legal issues before the court were whether the agreement met the 'better off overall test' as required by the Fair Work Act, and if it complied with the relevant provisions of the Act, including the provisions related to minimum wages, penalty rates, and other employment conditions. Additionally, the court had to consider whether the agreement was made in good faith and whether it adhered to the prescribed bargaining processes.

The court found that the agreement satisfied the 'better off overall test', meaning that the overall benefits to the employees outweighed any potential detriments. The court also determined that the agreement complied with all relevant provisions of the Fair Work Act, including those pertaining to minimum wages, penalty rates, and other employment conditions. Furthermore, the court was satisfied that the agreement was made in good faith and that the prescribed bargaining processes were followed.

In light of these findings, the court approved the LMC Electrical Contractors Pty. Ltd. ETU Enterprise Agreement 2021 – 2025. The union's application for approval was successful, and the agreement was ratified under the Fair Work Act 2009. This decision provides clarity and certainty for both the union and the company regarding the terms and conditions of employment for the electrical contracting industry.

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