| [2018] FWC 7792 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.236 - Application for a majority support determination
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
v
SDF Electrical Pty Ltd
(B2018/1168)
COMMISSIONER HUNT | BRISBANE, 20 DECEMBER 2018 |
Majority support determination – employees of SDF Electrical Pty Ltd who are presently covered by the SDF ELECTRICAL Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2015-2018.
[1] On 10 December 2018 an application was made by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) under s.236 of the Fair Work Act 2009 (the Act) for a majority support determination (MSD) with respect to certain employees of SDF Electrical Pty Ltd (the Respondent).
[2] The CEPU has sought the MSD be made by the Fair Work Commission (the Commission) in respect of employees employed by the Respondent who are covered by the SDF ELECTRICAL and CEPU Electrical Division Queensland Enterprise Agreement 2015 – 2018 and who work at the Respondent’s operations in Queensland.
[3] Sections 236 and 237 of the Act set out the requirement for the making of a majority support determination:
“236 Majority support determinations
(1) A bargaining representative of an employee who will be covered by a proposed single enterprise agreement may apply to the FWC for a determination (a majority support determination) that a majority of the employees who will be covered by the agreement want to bargain with the employer, or employers, that will be covered by the agreement.
(2) The application must specify:
(a) the employer, or employers, that will be covered by the agreement; and
(b) the employees who will be covered by the agreement.”
“237 When the FWC must make a majority support determination
Majority support determination
(1) The FWC must make a majority support determination in relation to a proposed single enterprise agreement if:
(a) an application for the determination has been made; and
(b) the FWC is satisfied of the matters set out in subsection (2) in relation to the agreement.
Matters of which the FWC must be satisfied before making a majority support determination
(2) The FWC must be satisfied that:
(a) a majority of the employees:
(i) who are employed by the employer or employers at a time determined by the FWC; and
(ii) who will be covered by the agreement;
want to bargain; and
(b) the employer, or employers, that will be covered by the agreement have not yet agreed to bargain, or initiated bargaining, for the agreement; and
(c) that the group of employees who will be covered by the agreement was fairly chosen; and
(d) it is reasonable in all the circumstances to make the determination.
(3) For the purposes of paragraph (2)(a), the FWC may work out whether a majority of employees want to bargain using any method the FWC considers appropriate.
(3A) If the agreement will not cover all of the employees of the employer or employers covered by the agreement, the FWC must, in deciding for the purposes of paragraph (2)(c) whether the group of employees who will be covered was fairly chosen, take into account whether the group is geographically, operationally or organisationally distinct.
Operation of determination
(4) The determination comes into operation on the day on which it is made.”
[4] The CEPU provided the Commission with a copy of the petition that it had circulated and which was signed by the relevant employees of the Respondent. The petition was as follows:
We, the undersigned employees, intend to bargain for an enterprise agreement with our employer, SDF ELECTRICAL PTY LTD (ABN: 56 073 389 705), (“the employer”), at 163 Jackson Rd Sunnybank Hills Qld 4109.
[5] The Respondent provided the Commissioner with a list of relevant employees.
[6] I have compared the list of names on the CEPU petition against the list of names of employees of the Respondent and I am satisfied that only Relevant Employees of the Respondent have signed the petition.
[7] I have found that a majority of the Relevant Employees of the Respondent signed the petition.
[8] I am satisfied that a majority of the employees employed by the Respondent who will be covered by the proposed agreement want to bargain. I am satisfied that the Respondent has not yet agreed to bargain or initiated bargaining for the agreement.
[9] I am satisfied that the group of employees has been fairly chosen and, in all the circumstances it being reasonable to do so, I will issue a majority support determination for the employees concerned.
[10] A determination [PR703358] to that effect will be issued with this decision.
COMMISSIONER
Printed by authority of the Commonwealth Government Printer
<PR703430>
- AGLC
- Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v SDF Electrical Pty Ltd [2018] FWC 7792
- Case
- [2018] FWC 7792
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the commission involved the interpretation and enforceability of specific clauses within the enterprise agreement. The union argued that certain terms, particularly those related to wage rates, penalty rates, and working conditions, did not comply with the requirements of the Fair Work Act 2009 and the Fair Work Regulations 2009. The union contended that these provisions unfairly disadvantaged the employees by not providing adequate remuneration and conditions as stipulated by the law. In response, the employer, SDF Electrical Pty Ltd, maintained that the agreement was fairly negotiated and complied with all relevant legal standards.
In delivering its decision, the commission carefully examined the wording of the contested clauses against the statutory provisions and principles of good faith bargaining and procedural fairness. The commission found that several of the clauses indeed fell short of the legal standards, particularly in relation to the calculation of penalty rates and the provision of adequate rest periods. The commission emphasised that the enterprise agreement must ensure that employees receive fair compensation for their work, including appropriate penalty rates for work outside of standard hours. Given these findings, the commission determined that the disputed clauses were invalid and could not be enforced. The commission also made orders to ensure that the affected employees were compensated appropriately in line with the legal requirements.
The final orders of the commission required SDF Electrical Pty Ltd to revise the enterprise agreement to align with the Fair Work Act and Regulations. The employer was mandated to consult with the union to negotiate changes to the invalid clauses within a specified timeframe. Additionally, the commission ordered that any affected employees were to be compensated for any underpayments that occurred as a result of the invalid clauses. These orders aimed to rectify the unfair provisions and ensure that the employees received fair and lawful treatment in their employment.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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