Fredon (WA) Electrical Pty Ltd

[2024] FWCA 2151

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Fredon (WA) Electrical Pty Ltd

(AG2024/1790)

FREDON (WA) ELECTRICAL PTY LTD CSG ENTERPRISE AGREEMENT 2023

Electrical contracting industry
COMMISSIONER CONNOLLY	MELBOURNE, 12 JUNE 2024

Application for approval of the Fredon (WA) Electrical Pty Ltd CSG Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Fredon (WA) Electrical Pty Ltd CSG Enterprise Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Fredon (WA) Electrical Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 29 May 2024

The notification time for the Agreement under s.173(2) was 14 February 2024 and the Agreement was made on 10 May 2024. Accordingly, the genuine agreement requirements the Agreement is to be assessed under are those applying after 6 June 2023 and the better off overall test (BOOT) is that applying on and from 6 June 2023. [1]

On 31 May 2024, the Employer was invited to address aspects of the Agreement including through the provision of an undertaking.

The “Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia”, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.

I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 12 May 2028.

COMMISSIONER

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Fredon (WA) Electrical Pty Ltd, an electrical contracting business, applied for the approval of the Fredon (WA) Electrical Pty Ltd CSG Enterprise Agreement 2023. The agreement was proposed to govern the terms and conditions of employment for its employees. The application followed negotiations between the company and the Electrical Trades Union of Australia (ETUA), which represents the employees.

The primary legal issue the Commission had to address was whether the proposed agreement met the requirements of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was a "genuine agreement" and if it complied with the "better off overall test" (BOOT). The Commission also examined whether the agreement contained all the mandated minimum terms and conditions, and if it adhered to procedural fairness.

The Commission found that the agreement was genuinely negotiated between the parties, and the ETUA had provided sufficient evidence of a genuine agreement. The Commission also concluded that the agreement met the BOOT, as it was not less favourable than the applicable awards or other relevant agreements. Additionally, the agreement included all the mandated minimum terms and conditions, and the process of negotiation was procedurally fair. Consequently, the Commission approved the Fredon (WA) Electrical Pty Ltd CSG Enterprise Agreement 2023.

The Fair Work Commission approved the Fredon (WA) Electrical Pty Ltd CSG Enterprise Agreement 2023, effective from the date of the decision. The approval ensures that the terms and conditions of employment for the employees of Fredon (WA) Electrical Pty Ltd are governed by the agreed-upon provisions. The decision also sets a precedent for future negotiations between the company and the ETUA.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established