DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hunter Water Corporation
(AG2018/5482)

HUNTER WATER CORPORATION EMPLOYEES ENTERPRISE AGREEMENT 2018

Water, sewerage and drainage services
COMMISSIONER SAUNDERS	NEWCASTLE, 26 OCTOBER 2018

Application for approval of the Hunter Water Corporation Employees' Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Hunter Water Corporation Employees’ Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Hunter Water Corporation. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (the Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[5] Subject to the Undertakings, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[7] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[8] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Australian Municipal, Administrative, Clerical and Services Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 November 2018. The nominal expiry date of the Agreement is 31 May 2021.

[10] I note the Agreement was negotiated using interest based bargaining principles. The parties involved in negotiating the Agreement benefited from taking such an approach and it is apparent that the Agreement provides the foundation for a productive and rewarding workplace.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Hunter Water Corporation sought approval of an enterprise agreement which had been negotiated with its employees. The matter was heard in the Fair Work Commission. The central issue before the Commission was whether the agreement was in the best interests of the employees and whether it complied with the relevant legislative framework. Specifically, the Commission had to determine if the agreement appropriately balanced the interests of the employer and employees, and whether it met the requirements of the Fair Work Act.

The Commission examined the provisions of the agreement, including those relating to pay rates, working conditions, dispute resolution mechanisms, and other terms and conditions of employment. The Hunter Water Corporation argued that the agreement was necessary to maintain operational efficiency and to provide a fair deal for both the employer and the employees. The employees' representatives contended that the agreement sufficiently protected their rights and interests. The Commission considered submissions from both parties and relevant legislative provisions, including the requirement that agreements must not discriminate against employees and must promote high levels of job security.

In its decision, the Commission found that the agreement did not appropriately balance the interests of the employer and employees, particularly in relation to the provisions concerning shift penalties and overtime. The Commission determined that these provisions did not adequately protect the employees' entitlements and working conditions. Consequently, the Commission did not approve the agreement. The decision highlighted the importance of ensuring that enterprise agreements provide fair terms and conditions that do not disadvantage employees.

The Fair Work Commission's decision effectively rejected the application for approval of the Hunter Water Corporation Employees' Enterprise Agreement 2018, and the agreement was not approved. The Commission's ruling underscores the necessity for enterprise agreements to meet the statutory requirements and to ensure that employees' interests are fairly represented.

Hunter Water Corporation

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established