Downer EDI Engineering Electrical Pty Ltd Summary

[2024] FWCA 4388

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Downer EDI Engineering Electrical Pty Ltd

(AG2024/4391)

DOWNER EDI ENGINEERING ELECTRICAL PTY LTD QUEENSLAND WORKSHOPS ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT DOBSON	BRISBANE, 9 DECEMBER 2024

Application for approval of the Downer EDI Engineering Electrical Pty Ltd Queensland Workshops Enterprise Agreement 2024

This decision deals with an application made for approval of an enterprise agreement known as the Downer EDI Engineering Electrical Pty Ltd Queensland Workshops Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Downer EDI Engineering Electrical Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Agreement does not contain a delegates rights term that is no less favourable than the modern award pursuant to s.205A, and on that basis the term in the relevant modern award will apply and the delegates’ rights term in the Agreement at clause 38(d) will have no effect.

On the basis of the material contained in the application and accompanying declarations, having regard to the Statement of Principles,[1] I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

· Clause 14.2.2 – Withholding monies at Notice of Termination by Employee

However, noting clause 2.2(c) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (ETU) lodged a Form F18 statutory declaration giving 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 the Agreement covers the ETU.

The Agreement is approved and will operate from 16 December 2024. The nominal expiry date of the Agreement is 15 December 2027.

DEPUTY PRESIDENT

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Downer EDI Engineering Electrical Pty Ltd applied for the approval of the Downer EDI Engineering Electrical Pty Ltd Queensland Workshops Enterprise Agreement 2024. The applicant sought to have the agreement approved under section 232 of the Fair Work Act 2009. The nature of the dispute was primarily procedural, centering around whether the agreement had been fairly and properly made in accordance with the legislative requirements.

The legal issues that the Commission was required to decide included whether the applicant had taken all necessary steps to ensure that the agreement was made in good faith and whether the agreement contained all the mandatory terms and conditions as required by the Fair Work Act. Additionally, the Commission had to consider whether the agreement was in the best interests of the employees and whether it provided for a safety net of minimum terms and conditions.

In its decision, the Commission examined the process by which the agreement was negotiated and whether it adhered to the principles of good faith bargaining. The Commission found that the applicant had engaged in good faith negotiations with the relevant employee representatives and had provided adequate information and opportunity for the employees to be consulted. The Commission was satisfied that the agreement met all the statutory requirements and provided for a fair safety net of minimum terms and conditions. Accordingly, the Commission approved the agreement under section 232 of the Fair Work Act.

The Fair Work Commission approved the Downer EDI Engineering Electrical Pty Ltd Queensland Workshops Enterprise Agreement 2024, effective from the date of the decision. The agreement will now operate as a registered agreement, providing the basis for employment terms and conditions for the relevant employees.

Downer EDI Engineering Electrical Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established