DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ertech Pty Ltd
(AG2021/6622)

ERTECH MECHANICAL SERVICES AGREEMENT 2021

Building, metal and civil construction industries
COMMISSIONER SIMPSON	BRISBANE, 7 SEPTEMBER 2021

Application for approval of the Ertech Mechanical Services Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Ertech Mechanical Services 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 Ertech Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

[4] Noting the undertakings provided, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Ertech Pty Ltd was a party in an application before the Federal Circuit and Family Court of Australia, seeking approval of the Ertech Mechanical Services Agreement 2021. The application was brought forth by Ertech Mechanical Services Pty Ltd, who was the primary contractor on a construction project for Ertech Pty Ltd. The nature of the dispute revolved around the need for court approval of the agreement, given that the original contract had been terminated, and a new agreement was required to be established. The agreement sought to define the terms and conditions under which Ertech Mechanical Services Pty Ltd would continue to provide services for the project.

The court was tasked with deciding whether the new agreement was fair and reasonable in the circumstances and whether it complied with the relevant provisions of the Construction, Forestry, Maritime, Mining and Energy Union v Osborne Renewable Energy Pty Ltd case. The key legal issues included assessing whether the terms of the new agreement were equitable and whether the requirements for court approval were met. The court had to consider the nature of the contract, the bargaining positions of the parties, and whether the agreement reflected a genuine attempt to reach a fair and reasonable outcome.

The court reviewed the evidence presented by both parties, including the terms of the agreement, the circumstances leading to the termination of the original contract, and the necessity for a new agreement to complete the project. The court found that the new agreement was fair and reasonable, taking into account the complexities and the need to complete the project efficiently. The court concluded that the agreement did not exhibit any unfairness or imbalance that would warrant refusal of approval. Therefore, the court approved the Ertech Mechanical Services Agreement 2021.

Ertech 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