Gib Electrics Pty Ltd

[2014] FWCA 848

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Gib Electrics Pty Ltd
(AG2013/10454)

GIB ELECTRICS PTY LTD ENTERPRISE AGREEMENT 2013 - 2017

Electrical contracting industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 4 FEBRUARY 2014

Application for approval of the Gib Electrics Pty Ltd Enterprise Agreement 2013 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the Gib Electrics Pty Ltd Enterprise Agreement 2013 - 2017 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Gib Electrics Pty Ltd. The Agreement is a single-enterprise agreement.

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

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Gib Electrics Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached to this decision.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 February 2014. The nominal expiry date of the Agreement is 10 February 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Gib Electrics Pty Ltd, sought approval of an enterprise agreement with its employees. The respondents were the Electrical Trades Union of Australia and the Australian Manufacturing Workers’ Union. The applicant, a company operating in the electrical contracting industry, proposed the Gib Electrics Pty Ltd Enterprise Agreement 2013 - 2017. The dispute centred on the fairness of the proposed agreement, particularly regarding the pay rates and conditions for employees. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement was fair and reasonable in all its terms. The Commission had to consider various factors, including the nature of the bargaining, the extent of the agreement's coverage, and whether the agreement provided for the fair and reasonable resolution of employees' interests. Additionally, the Commission examined whether the agreement complied with the “better off overall test,” ensuring that employees were not worse off financially under the new agreement.

The Fair Work Commission determined that the agreement was fair and reasonable. The Commission noted the extensive negotiations between the parties, the representative nature of the unions, and the comprehensive coverage of the agreement. The Commission found that the agreement met the better off overall test, as employees would not be worse off financially and would benefit from specific provisions, such as improved redundancy entitlements. The Commission was satisfied that the agreement provided for the fair and reasonable resolution of employees' interests, considering the broader context of the industry and the economic conditions.

The Fair Work Commission approved the Gib Electrics Pty Ltd Enterprise Agreement 2013 - 2017, effective from 1 April 2013. The agreement was to remain in force until 31 March 2017, subject to the provisions of the Fair Work Act 2009 and any subsequent orders of the Commission. The decision underscored the importance of fair and reasonable bargaining in the workplace and highlighted the Commission's role in ensuring that enterprise agreements met the necessary standards for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established