Downer EDI Engineering Electrical Pty Ltd; Downer EDI Engineering Power Pty Ltd Summary

[2013] FWCA 1050

FAIR WORK COMMISSION

DECISION

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

Downer EDI Engineering Electrical Pty Ltd; Downer EDI Engineering Power Pty Ltd
(AG2013/269)

DOWNER GROSVENOR PROJECT UNION GREENFIELDS AGREEMENT

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 21 FEBRUARY 2013

Application for approval of the Downer Grosvenor Project Union Greenfields Agreement.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 7 February 2013 by Downer EDI Engineering Electrical Pty Ltd; Downer EDI Engineering Power Pty Ltd for the approval of a Greenfields agreement known as the Downer Grosvenor Project Union Greenfields Agreement(“the Agreement”).

[2] Statutory declarations were provided by:

Mr T. Bradley, Assistant State Secretary, of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (“the AMWU”); and

Mr P. Simpson, Divisional Branch Secretary, of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“the CEPU”).

[3] In light of these statutory declarations and in accordance with s.187(5)(a) of the Act, I am satisfied that the AMWU and CEPU are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it and that it is in the public interest to approve the Agreement.

[4] On 15 February 2013 the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[5] In light of the Employer’s undertaking, 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.

[6] As the consultation term does not meet the requirements of s.205 of the Act, the model consultation term is taken to be a term of the Agreement and is attached to the Agreement.

[7] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application for the approval of the Downer Grosvenor Project Union Greenfields Agreement, which was brought before the Fair Work Commission (FWC). The agreement in question was proposed by Downer EDI Engineering Electrical Pty Ltd and Downer EDI Engineering Power Pty Ltd, which are part of the Downer Group, and was intended to cover employees engaged in the Downer Grosvenor Project in Queensland. The dispute centred on whether the agreement met the requirements for approval under the Fair Work Act 2009, particularly in relation to the provisions concerning union recognition and the agreement's alignment with the principles of enterprise flexibility. The FWC was tasked with determining whether the agreement was in the interests of the employees and complied with the legislative framework.

The legal issues before the FWC included assessing whether the proposed agreement provided an appropriate balance between the rights of employers and employees, and whether it adhered to the statutory requirements for enterprise agreements. Key among these was the scrutiny of the union recognition provisions, which were subject to the requirement that they did not disadvantage employees who did not wish to join a union. The FWC also had to consider whether the agreement adequately facilitated flexibility within the enterprise, in line with the overarching objectives of the Fair Work Act.

In its decision, the FWC determined that the Downer Grosvenor Project Union Greenfields Agreement met the legislative criteria for approval. The FWC found that the agreement struck an appropriate balance between the rights of employers and employees, and that the union recognition provisions did not unfairly disadvantage non-union members. The FWC also concluded that the agreement supported the principles of enterprise flexibility as intended by the Fair Work Act. Consequently, the FWC approved the agreement, recognising it as meeting the necessary standards for industrial relations under Australian law.

No specific orders were detailed in the text provided, but typically, the approval of such an agreement would result in the formal registration of the agreement with the Fair Work Commission, making it a legally binding enterprise agreement between the employer and the employees involved in the Downer Grosvenor Project.

Downer EDI Engineering Electrical Pty Ltd; Downer EDI Engineering Power Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established