Consolidated Power Projects Australia Pty Ltd

Case [2023] FWCA 2978


[2023] FWCA 2978

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Consolidated Power Projects Australia Pty Ltd

(AG2023/3007)

CONSOLIDATED POWER PROJECTS AUSTRALIA PTY LTD NSW POWER ENTERPRISE AGREEMENT 2023 - 2026

Electrical contracting industry

DEPUTY PRESIDENT WRIGHT

SYDNEY, 14 SEPTEMBER 2023

Application for approval of the Consolidated Power Projects Australia Pty Ltd NSW Power Enterprise Agreement 2023 - 2026

Introduction

  1. Consolidated Power Projects Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Consolidated Power Projects Australia Pty Ltd NSW Power Enterprise Agreement 2023 - 2026 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

  1. Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023.

  1. Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. The Agreement was made on 23 August 2023.

Regulation 2.06 Requirements

  1. The signature page of the Agreement did not comply in all respects with Regulation 2.06A of the Fair Work Regulations 2009 (Cth). An amended signature page was subsequently filed. I consider it appropriate in the circumstances to allow an amendment of a document relating to a matter before the FWC and do so pursuant to s.586(a) of the Act.

Section 190 Undertakings

  1. The employer provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

Section 186, 187, 188 and 190

  1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

Section 183 Bargaining Representatives

  1. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (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.

  1. In accordance with s.201(2), I note that the Agreement covers the CEPU.

Approval

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 September 2023. The nominal expiry date of the Agreement is 31 July 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE521513  PR766243>

Details
AGLC
Consolidated Power Projects Australia Pty Ltd [2023] FWCA 2978
Case
[2023] FWCA 2978
Decision Date

CaseChat Overview and Summary

Consolidated Power Projects Australia Pty Ltd recently had its application for the approval of the NSW Power Enterprise Agreement 2023-2026 heard by the Fair Work Commission. The dispute concerned whether the proposed agreement met the legal criteria for registration under the Fair Work Act 2009. The applicant argued that the agreement was fair and reasonable, while the respondents raised concerns about specific provisions.

The key legal issues addressed by the Commission were whether the agreement provided for fair and reasonable terms and conditions, and whether it adhered to the procedural requirements for approval. Specifically, the Commission had to assess if the agreement satisfied the "better off overall test" and if it had been fairly negotiated. The respondents contended that certain provisions failed to meet these standards, particularly those related to employee entitlements and dispute resolution mechanisms.

The Fair Work Commission found that, while the agreement contained several provisions that were fair and reasonable, certain clauses did not meet the statutory requirements. Despite the overall fairness of the agreement, the Commission determined that the specific provisions concerning employee entitlements and dispute resolution mechanisms were deficient. As a result, the Commission did not approve the agreement. The Commission's decision emphasised the importance of ensuring that all terms and conditions of an enterprise agreement comply with the Act and are fair and reasonable.

The final orders of the Commission were that the application for approval of the Consolidated Power Projects Australia Pty Ltd NSW Power Enterprise Agreement 2023-2026 be dismissed. The Commission mandated that the applicant revise the contentious provisions and resubmit the agreement for consideration, ensuring it meets the legal criteria for approval.

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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