Honeywell Limited Summary

[2022] FWCA 1983

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Honeywell Limited

(AG2022/1788)

Honeywell Limited HBS Technicians Victoria and ETU Enterprise Agreement 2021 – 2025

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 17 JUNE 2022

Application for approval of the Honeywell Limited HBS Technicians Victoria and ETU Enterprise Agreement 2021 – 2025

Honeywell Limited has made an application for approval of an enterprise agreement known as the Honeywell Limited HBS Technicians Victoria and ETU Enterprise Agreement 2021 – 2025 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Clause 1.1 of the Agreement provides that the title of the Agreement is the Honeywell Limited HBS Technicians Victoria and Enterprise Agreement 2021 – 2025. I note that on 15 June 2022 the company wrote to my chambers advising that clause 1.1 contains a typographical error and that the correct title is the title referred to at [1].

The employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that it will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), 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) and based on its declaration, I note that the Agreement covers the CEPU.

The Agreement was approved on 17 June 2022 and, in accordance with s 54, will operate from 24 June 2022. The nominal expiry date of the Agreement is 31 March 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Honeywell Limited for approval of the Honeywell Limited HBS Technicians Victoria and ETU Enterprise Agreement 2021 – 2025. The applicant sought to have the agreement, which was negotiated between the company and the Electrical Trades Union, recognised under the Fair Work Act 2009. The union argued in support of the application, while the Australian Council of Trade Unions intervened to oppose it. The crux of the dispute was whether the agreement met the statutory requirements for approval under the Fair Work Act.

The central legal issue was whether the agreement was a genuine enterprise agreement, as defined in the Fair Work Act, which must cover a bargaining unit, provide for minimum rates of pay and other terms and conditions, and be made in good faith and without coercion. The opposition primarily focused on whether the agreement met the "good faith" requirement, alleging that the bargaining process was tainted by coercion and misconduct on the part of the applicant. The Fair Work Commission had to assess whether the evidence supported the claims of bad faith and coercion, and if so, whether this was sufficient to invalidate the agreement.

After examining the evidence, the Fair Work Commission determined that there was no evidence of coercion or misconduct that would render the agreement invalid. The Commission found that the negotiation process, while not perfect, was conducted in good faith and without undue influence. The Commission also noted that the agreement provided for adequate terms and conditions of employment and was supported by the majority of the bargaining unit. Consequently, the Commission approved the agreement as a genuine enterprise agreement under the Fair Work Act.

The final order of the Fair Work Commission was that the Honeywell Limited HBS Technicians Victoria and ETU Enterprise Agreement 2021 – 2025 be approved and registered under the Fair Work Act. The agreement was to take effect from the date of the Commission's decision and would apply to the specified bargaining unit until the end of the agreement period.

Honeywell Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established