Electrix Pty Ltd

[2014] FWCA 6920

FAIR WORK COMMISSION

DECISION

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

Electrix Pty Ltd
(AG2014/7550)

ELECTRIX PTY LTD QUEENSLAND LNG PROJECTS UNION AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 2 OCTOBER 2014

Application for approval of the Electrix Pty Ltd Queensland LNG Projects Union Agreement 2014.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 17 September 2014 by Electrix Pty Ltd for the approval of a Greenfields agreement known as the Electrix Pty Ltd Queensland LNG Projects Union Agreement 2014(“the Agreement”).

[2] Statutory declarations were provided by:

Mr R. Webb, State Secretary, of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (“the AMWU”);

Mr B. Swan, Queensland Branch Secretary, of the Australian Workers’ Union (“the AWU”); 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, AWU 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] 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 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

Electrix Pty Ltd applied to the Fair Work Commission for approval of the Electrix Pty Ltd Queensland LNG Projects Union Agreement 2014. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union. The matter was heard by Deputy President Kearnan over the course of four days. The central issue before the Commission was whether the agreement contained provisions that were contrary to public policy. Specifically, the question was whether certain clauses in the agreement that dealt with the resolution of disputes between employees and the employer were contrary to public policy because they required that such disputes be resolved by binding arbitration.

The Commission noted that the parties had agreed that the relevant test for determining whether a clause was contrary to public policy was that set out by the High Court in Re Australia and New Zealand Banking Group Ltd. The Court had held that a clause will be found to be contrary to public policy if it contravenes a fundamental principle of the common law or equity, or if it is otherwise so contrary to the public interest as to be contrary to public policy. The Commission found that the clauses in question did not contravene a fundamental principle of the common law or equity, nor were they otherwise contrary to the public interest. The Commission was satisfied that the clauses provided for a fair and efficient means of resolving disputes between the parties and did not unfairly disadvantage either party. The Commission approved the agreement subject to certain minor modifications.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established