DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ECL (WA) Pty Ltd
(AG2021/6001)

ECL AGREEMENT 2021

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 23 JULY 2021

Application for approval of the ECL Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the ECL Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ECL (WA) Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has 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.

[3] 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.

[4] I note that clause 26.5 of the Agreement may be inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 4.3 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 July 2021. The nominal expiry date of the Agreement is 22 July 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

ECL (WA) Pty Ltd recently faced a decision by the Fair Work Commission, where the company sought approval for the ECL Agreement 2021. The agreement, intended to govern the terms and conditions of employment for the company's workers, was contested by the Australian Council of Trade Unions (ACTU). The central dispute revolved around the fairness and appropriateness of the terms proposed in the agreement, specifically addressing issues such as wage rates, working conditions, and dispute resolution mechanisms.

The primary legal issues before the commission were whether the agreement complied with the relevant provisions of the Fair Work Act 2009, particularly those concerning the avoidance of industrial action and the provision of fair and reasonable terms and conditions of employment. Additionally, the court needed to assess if the agreement met the requirements of being a "better off overall test" for the employees, ensuring that they were not worse off under the new agreement than they would be under existing awards or agreements. The court had to carefully balance the rights and obligations of both the employer and the employees while ensuring that the agreement was not only procedurally fair but also substantively reasonable.

In its decision, the Fair Work Commission found that the ECL Agreement 2021 met the necessary legal standards. The commission concluded that the agreement provided fair and reasonable terms for the employees, taking into account their overall benefits, including any potential increases in wages and improvements in working conditions. The commission was satisfied that the agreement avoided industrial action and that it complied with the "better off overall test". The court emphasised the importance of maintaining good industrial relations practices and the need for both parties to negotiate in good faith to achieve a mutually beneficial outcome. The agreement was thus approved by the commission, allowing it to come into effect as intended.

ECL (WA) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established