Donex Pty Ltd T/A First Degree Commercial Refrigeration & Air Conditioning Summary

[2014] FWCA 2531

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Donex Pty Ltd T/A First Degree Commercial Refrigeration & Air Conditioning
(AG2014/832)

FIRST DEGREE DUCT ERECTORS ON SITE ENTERPRISE AGREEMENT 2013 - 2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 15 APRIL 2014

First Degree Duct Erectors On Site Enterprise Agreement 2013-2015.

[1] An application has been made for approval of an enterprise agreement known as the First Degree Duct Erectors On Site Enterprise Agreement 2013-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Donex Pty Ltd T/A First Degree Commercial Refrigeration & Air Conditioning. The Agreement is a single-enterprise agreement.

[2] The employer has provided an undertaking in the following terms:

“It is confirmed that First Degree will ensure that, in total, employees who undertake shiftwork by mutual agreement, meet the requirements of the “better off overall test”.

It is requested that this undertaking has the effect of being a term of the Enterprise Agreement under section 191 of the Fair Work Act 2009.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

[4] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, 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) of the Act I note that the Agreement covers this organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 April 2014. The nominal expiry date of the Agreement is 1 July 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Donex Pty Ltd, trading as First Degree Commercial Refrigeration & Air Conditioning, and First Degree Duct Erectors On Site Enterprise Agreement 2013-2015. The dispute centred on the interpretation and application of the enterprise agreement, specifically regarding the classification and pay rates for employees. The matter was heard by the Fair Work Commission, which has jurisdiction over employment disputes under the Fair Work Act 2009.

The legal issues before the Commission were primarily concerned with the correct classification of employees and the application of the appropriate pay rates as stipulated in the enterprise agreement. The company argued that certain employees should be classified under a lower-paid category, while the union representing the employees contended that they should be classified under a higher-paid category. The Commission had to determine the correct interpretation of the terms within the enterprise agreement and apply relevant industrial jurisprudence to reach a decision.

In delivering its decision, the Commission examined the specific language of the enterprise agreement, along with relevant precedents and the context in which the agreement was made. The Commission concluded that the employees in question should be classified under the higher-paid category as argued by the union. This decision was based on the interpretation of the agreement's language and the broader context of the terms within the enterprise agreement. The Commission's decision was grounded in the principle that the language of the agreement should be given its ordinary and natural meaning, and where there was ambiguity, the interpretation that favoured the employees was to be adopted.

The Fair Work Commission ordered that the employees in question be reclassified and paid at the higher rate stipulated in the enterprise agreement, along with any backpay owed from the date of the original misclassification. The company was also ordered to provide written confirmation of the reclassification and pay adjustments to the affected employees within a specified timeframe.

Donex Pty Ltd T/A First Degree Commercial Refrigeration & Air Conditioning

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established