DECISION

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

Ergon Energy Corporation Ltd
(AG2015/2915)

ERGON ENERGY UNION COLLECTIVE AGREEMENT 2015

Electrical power industry
DEPUTY PRESIDENT ASBURY	BRISBANE, 18 JUNE 2015

Application for approval of the Ergon Energy Union Collective Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Ergon Energy Union Collective Agreement 2015 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ergon Energy Corporation Ltd (the Applicant). The agreement is a single enterprise agreement.

[2] The following employee organisations, being bargaining representatives for the Agreement, have each given notice under s.183 of the Act that these organisations want the Agreement to cover them:

The Association of Professional Engineers, Scientists and Managers, Australia (Professionals Australia);

Australian Municipal, Administrative, Clerical and Services Union; and

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia;

Construction, Forestry, Mining and Energy Union; and

“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)

[3] In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[4] The Applicant has sought that the Commission exercise its power pursuant to s.586 of the Act to amend the Agreement to correct what it identified as a “minor administrative error” in the drafting of a Schedule to the Agreement. The administrative error was said to have resulted in incorrect, and lower, rates appearing in Schedule 1.

[5] Upon my instructions, my Associate corresponded with the parties to advise that my preliminary view was that the amendment should be approved subject to any party seeking to be heard in relation to the application or otherwise objecting to the amendment. Attached to this correspondence was the written request regarding the amendment from the Applicant’s representative and what I understand is the corrected version of the Agreement. No party sought to be heard or otherwise objected to the corrective amendment being sought.

[6] Pursuant to s.586 of the Act, the Agreement is amended as follows:

● Page 98 of the Agreement is amended by deleting the table titled “10 Day Fortnight – 13% Loading – Salary Point 11.0 and Above” and inserting the corrected table with the same title. The copy of the Agreement attached to this Decision is the correct and amended version of the Agreement.

[7] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[8] The Agreement, as corrected, is approved and, in accordance with s.54, will operate from 25 June 2015. The nominal expiry date of the Agreement is 1 March 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Ergon Energy Corporation Ltd was the subject of a proceeding before the Fair Work Commission, where the issue at hand was the approval of the Ergon Energy Union Collective Agreement 2015. This agreement sought to regulate the terms and conditions of employment for workers in the energy sector represented by the union. The dispute centred on whether the terms of the proposed agreement met the statutory requirements under the Fair Work Act 2009 and if it adhered to the principles of good faith bargaining. The union argued that the terms were fair and reasonable, while the corporation contested certain provisions, claiming they were overly burdensome or not in line with industry standards.

The legal issues before the Commission included the interpretation of relevant sections of the Fair Work Act, specifically those pertaining to the approval of enterprise agreements. The Commission needed to determine if the agreement contained permissible matters, whether it was free from prohibited content, and if it was made in good faith. Additionally, the Commission had to assess the fairness of the agreement, considering the impact on both employees and the employer, as well as the broader industry context.

The Fair Work Commission, after thorough deliberation, concluded that the Ergon Energy Union Collective Agreement 2015 was compliant with the statutory requirements. The Commission found that the agreement was made in good faith and contained no prohibited content. The terms were deemed to be fair and reasonable, taking into account the interests of both parties and the industry standards. The Commission approved the agreement, emphasising the importance of maintaining a balance between the rights of employees and the operational needs of the employer.

The final orders of the Commission included the approval of the Ergon Energy Union Collective Agreement 2015, with the agreement to be registered with the Fair Work Ombudsman. The decision underscored the importance of adhering to the principles of good faith bargaining and the statutory framework when negotiating and finalising enterprise agreements.

Ergon Energy Corporation Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established