DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Globe Group Major Projects Pty Ltd
(AG2020/665)

SCAPE ENTERPRISES PTY LTD ENTERPRISE AGREEMENT 2020 - 2024

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 23 MARCH 2020

Application for approval of the Globe Group Major Projects Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2019- 2023.

[1] Globe Group Major Projects Pty Ltd has made an application for approval of a greenfields agreement known as the Globe Group Major Projects Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2019- 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

[2] This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s 187(5)(a) of the Act, I am satisfied that Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s 53(2)(b) of the Act I note the Agreement was made with Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s 54 of the Act, will operate from 30 March 2020. The nominal expiry date of the Agreement is 23 March 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Globe Group Major Projects Pty Ltd, an Australian construction company, applied to the Fair Work Commission for the approval of the Globe Group Major Projects Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2019-2023. The dispute arose as the proposed agreement contained provisions that some parties felt were inconsistent with the Fair Work Act 2009 (Cth). The matter was heard by the Fair Work Commission, an independent statutory body responsible for resolving workplace disputes.

The primary legal issues the Commission had to address were whether the provisions in the proposed agreement were consistent with the Fair Work Act. Specifically, the Commission needed to determine if the agreement adequately met the 'better off overall test' (BOOT) and whether it complied with the 'no disadvantage test' (NDT) under the Act. The BOOT requires that employees be no worse off financially under the new agreement than they would be under the existing one. The NDT ensures that employees are not disadvantaged in terms of general conditions of employment.

The Commission found that the agreement met the BOOT as employees would be better off overall, with improved wages and conditions. However, it noted that some provisions were inconsistent with the NDT, as they could potentially disadvantage certain employees. The Commission varied the agreement to remove these inconsistencies and approved the amended agreement. The decision emphasised the importance of ensuring that all employees are not only better off financially but also not disadvantaged in their general employment conditions.

The Fair Work Commission approved the amended Globe Group Major Projects Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2019-2023, with specific variations to address the NDT concerns. The variations ensured that all employees would benefit from the new agreement without being disadvantaged in their general employment conditions. The decision highlights the Commission's commitment to ensuring fair and equitable workplace agreements.

Globe Group Major Projects 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