Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v ICS Industries Pty Ltd T/A EnerSys

[2023] FWC 3336

[2023] FWC 3336

FAIR WORK COMMISSION

RECOMMENDATION

Fair Work Act 2009

s.240—Bargaining dispute

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

ICS Industries Pty Ltd T/A EnerSys

(B2023/1252)

COMMISSIONER HARPER-GREENWELL MELBOURNE, 20 DECEMBER 2023

Dispute in relation to a proposed enterprise agreement – recommendation by the Commission

1. On 14 November 2023, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) made an application to the Fair Work Commission (the Commission) to deal with a bargaining dispute. The dispute arises out of enterprise negotiations between ICS Industries Pty Ltd T/A EnerSys (EnerSys) and its employees for a proposed enterprise agreement (Proposed Agreement) to replace the ICS Industries –Thomastown and Somerton – Electrical Enterprise Agreement 2020 – 2023 (the Agreement).  The Agreement covers Electrical Employees who are presently engaged in bargaining for the Proposed Agreement.

1. The application is made pursuant to section 240 of the Fair Work Act 2009 (Cth) (the Act).

1. The factual background to the bargaining of the proposed enterprise agreement can be summarised as follows. EnerSys issued a Notice of Employee Representation Rights on 16 December 2022.  There have been no less than seven bargaining meetings.  The Proposed Agreement has been put to a vote on two occasions, the result on both occasions being unsuccessful. 

1. On 4 April 2024, the CEPU applied for a protected action ballot order.  On 5 April 2023,

Deputy President Clancy granted the order.  The result of the protected action ballot held was declared on 17 May 2023.

1. On 15 June 2023, the CEPU made an application to extend the 30 day period in which

industrial action is authorised.  Deputy President Hampton granted the application on 16 June 2023.

1. On 20 July 2023, the CEPU notified EnerSys of its intention to take protected industrial action in the form of partial work bans. The matter remained unresolved.

1. The Electrical Employees have been taking protected industrial action in the form of

complete withdrawal of their labour for an approximate period of 22 weeks and EnerSys has continued to operate with a limited number of contractors performing the electrical work.

1. The present Application has been the subject of two conferences have been held before this Commission.  The conference on 19 December 2023 was attended by representatives from the CEPU, EnerSys and nine A Grade Electricians and an Electrical Team Leader (DC Systems) (Electrical Employees).  Submissions for resolution were made and considered by both parties to the dispute.

1. The parties were notified that I had formed a view that the Commission should make a recommendation in an attempt to resolve the matter. The parties were advised of the general nature of the intended recommendation.  The parties were given an opportunity to consent to the recommendation. 

1. During the conference held on 19 December 2024 the parties informed the Commission that they accepted the recommendation. For the avoidance of doubt, the recommended changes to the enterprise agreement in this document refer to the changes to the version of the enterprise agreement that was most recently put up for vote. The parties informed the Commission that they would proceed to a vote on the proposed agreement in accordance with the terms of this recommendation. Therefore, in all the circumstances, the Commission makes the following recommendations by consent of the parties in respect of the matters in dispute:

A.The Agreement will have a nominal expiry date of 31 March 2027,

B.A wages increase of 4.7% will take effect from the date of a ‘yes’ vote occurring in the ballot to be held on 8 January 2024, and further increases of:

·3.5 % on 1 April 2024,

·3.5 % on 1 April 2025, and

·3.5 % on 1 April 2026.

C.An A-Grade Electrical Licence payment equivalent to a 1.5% all-purpose increase to be initiated from 1 April 2024,

D.A total period of 6 paid days delegate training to be shared by 2 delegates,

E.The classifications in the ICS Industries –Thomastown and Somerton – Electrical Enterprise Agreement 2020 – 2023 will be retained in the Proposed Agreement, and

F.The “36 hour clause” will be removed from the Proposed Agreement.

1. Further, the Commission makes the following recommendations by consent of the parties in respect of the matters in dispute on the basis that they are outside of the proposed agreement:

   G.    A sign on bonus of $1500 will be paid in the first full pay period following the

   approval of the Agreement by this Commission is recommended with,

   H.    Two paid union meetings for a duration of a half hour. The first to occur during the period of January to June 2024 and the second to occur during the period from July to December 2024,

   I.    An A-Grade Electrician will receive training as a “Fridgy” (refrigeration mechanic), and

   J.   EnerSys does not propose to change its approach to contracting that existed prior to the dispute, for the avoidance of doubt the approach taken by EnerSys to the use of contractors will revert back to the practices that existed prior to the protected action taken during the bargaining dispute.

1. Despite the obvious tension and frustration that was evident at the start of the conferences held by this Commission, it is necessary to commend the parties and their representatives on the way they conducted themselves before this Commission.  The views of all those that attended the proceedings before this Commission were considered with respect and the cooperative approach taken by the parties and their representatives has resulted in an amicable resolution of the matter.

1. With the consent of the parties the Proposed Agreement incorporating the Commission’s recommendations will proceed to be voted upon on 8 January 2024.  The Electrical Employees will return to work in accordance with the arrangements entered between the individuals and EnerSys.

1. In conclusion I again commend the parties and their representatives for their cooperative approach to reaching a resolution in this matter. The dispute is now resolved.

COMMISSIONER

Appearances:

Applicant: Mr Troy Gray of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
Respondent: Mr Ross Levin of Mills Oakley.

Conference details:
2023.
Melbourne.
11 December, 19 December.

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