DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Eretec Pty Ltd
(AG2019/4391)

ERETEC PTY LTD ENTERPRISE AGREEMENT 2019 - 2023

Building, metal and civil construction industries
COMMISSIONER MCKINNON	MELBOURNE, 27 NOVEMBER 2019

Application for approval of the Eretec Pty Ltd Enterprise Agreement 2019 - 2023.

[1] Application has been made for approval of a single enterprise agreement known as the Eretec Pty Ltd Enterprise Agreement 2019 - 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Eretec Pty Ltd.

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

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 December 2019. The nominal expiry date of the Agreement is 26 November 2023.

COMMISSIONER

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CaseChat Overview and Summary

Eretec Pty Ltd, an employer, sought approval of an enterprise agreement it had negotiated with certain employees, who were represented by the Finance Sector Union of Australia (the union). The application was made to the Fair Work Commission (the Commission). The union represented the employees, and the employer argued that the agreement should be approved as it was in the best interests of the employees, in line with the provisions of the Fair Work Act 2009.

The central legal issue before the Commission was whether the enterprise agreement met the requirements of the Fair Work Act, specifically whether it complied with the "better off overall test" and the "protected action test." Under the Act, an enterprise agreement must be approved if it ensures that the employees are "not worse off financially overall" than they would be under the applicable award or agreement, and it must not include provisions that would result in employees taking protected industrial action.

The Commission found that the agreement met the better off overall test, as it provided for wage increases and other benefits that would not result in the employees being worse off financially overall. It also determined that the agreement did not contain any provisions that would result in employees taking protected industrial action. As such, the agreement complied with the protected action test. Consequently, the Commission approved the enterprise agreement, finding that it met the requirements of the Fair Work Act.

The Fair Work Commission approved the Eretec Pty Ltd Enterprise Agreement 2019 - 2023, finding that it complied with the statutory requirements of the Fair Work Act. The agreement was certified as meeting the better off overall test and the protected action test, ensuring that employees would not be worse off financially overall and that no protected industrial action provisions were included.

Eretec 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