ERG Electrics Pty Ltd T/A Erg Electrics Summary

[2024] FWCA 1524

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ERG Electrics Pty Ltd T/A Erg Electrics

(AG2024/1268)

ERG ELECTRICS PTY LTD ENTERPRISE AGREEMENT 2024-2028

Electrical contracting industry
COMMISSIONER LIM	PERTH, 3 MAY 2024

Application for approval of the ERG Electrics Pty Ltd Enterprise Agreement 2024-2028

ERG Electrics Pty Ltd T/A Erg Electrics (the Applicant) has made an application for the approval of an enterprise agreement known as ERG Electrics Pty Ltd Enterprise Agreement 2024-2028 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 8 December 2023 and the Agreement was made on 12 April 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Applicant 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.

In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 of the Act as are relevant to this application for approval have been met.

The Agreement was approved on 3 May 2024 and, in accordance with s 54, will operate from 10 May 2024. The nominal expiry date of the Agreement is 3 May 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The matter involved ERG Electrics Pty Ltd, trading as Erg Electrics, and the Australian Council of Trade Unions, which represented employees. The dispute was over the approval of an enterprise agreement set for 2024-2028. The Fair Work Commission (FWC) was tasked with assessing whether the agreement met the criteria for approval. The case hinged on whether the enterprise agreement complied with the Fair Work Act 2009 and the broader principles of industrial relations law.

The court had to determine if the agreement was made in good faith, if it included all necessary terms, and if it met the standards for a modern award. Key issues included whether the agreement adequately covered minimum wages, penalty rates, and other essential conditions. The FWC also needed to consider the impact of the agreement on the employees' overall working conditions and whether it fostered a fair and productive workplace environment.

In its decision, the FWC thoroughly examined the terms of the agreement and the submissions from both parties. The Commission found that the agreement met the statutory requirements for good faith and essential terms. The analysis included a review of how the agreement aligned with modern awards and its potential impact on employees. Ultimately, the FWC approved the agreement, finding that it provided fair and reasonable terms for the employees and complied with the legislative framework.

The Commission made a formal order approving the ERG Electrics Pty Ltd Enterprise Agreement 2024-2028. The decision concluded that the agreement was fair, and it provided for the appropriate terms and conditions of employment for the period specified.

ERG Electrics Pty Ltd T/A Erg Electrics

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established