Hydro-Electric Corporation T/A Entura

Case [2020] FWCA 3507


[2020] FWCA 3507
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Hydro-Electric Corporation T/A Entura
(AG2020/1618)

ENTURA ENTERPRISE AGREEMENT 2020 – 2021

Electrical power industry

COMMISSIONER HUNT

BRISBANE, 3 JULY 2020

Application for approval of the Entura Enterprise Agreement 2020 – 2021.

[1] Hydro-Electric Corporation T/A Entura (the Employer) has applied for approval of an enterprise agreement known as the Entura Enterprise Agreement 2020 – 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the Australian Manufacturing Workers’ Union (the AMWU), the Association of Professional Engineers, Scientists and Managers Australia (APESMA), the Australian Municipal, Administrative, Clerical and Services Union, known as the Australian Services Union (the ASU) and five employee bargaining representatives for the Agreement regarding the undertakings.

[3] The APESMA wrote to my chambers advising that it has no objections to the undertakings provided by the Employer. I did not receive any correspondence from any other bargaining representatives.

[4] I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[5] I have taken into consideration the material filed in the Commission. Subject to the undertakings referred to above, 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[6] The AMWU, the APESMA and the ASU 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) of the Act I note that the Agreement covers the AMWU, the APESMA and the ASU.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 July 2020. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE508432  PR720728>

Annexure A:

Details
AGLC
Hydro-Electric Corporation T/A Entura [2020] FWCA 3507
Case
[2020] FWCA 3507
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved the Hydro-Electric Corporation trading as Entura and its employees, represented by the Electrical Trades Union of Australia. The dispute centred on the approval of the Entura Enterprise Agreement 2020-2021, with the union seeking adjustments to certain terms and conditions to better align with industry standards and employee needs. The tribunal was tasked with reviewing the proposed agreement and determining whether it met the legal requirements for approval under the Fair Work Act 2009.

The primary legal issues the tribunal needed to address included whether the proposed agreement was genuinely negotiated, whether it complied with the good faith obligations under the Fair Work Act, and if the terms and conditions were fair and reasonable. The tribunal also had to consider whether the agreement appropriately balanced the interests of both employers and employees, particularly in light of any existing awards or agreements that might influence the terms proposed.

In delivering its decision, the tribunal examined the negotiation process and found that the agreement had been genuinely negotiated between the parties. The tribunal also considered the good faith obligations and determined that the parties had met these requirements. Regarding the fairness and reasonableness of the terms, the tribunal found that the proposed agreement was fair, noting the balance it struck between the needs of the corporation and the rights of the employees. The tribunal approved the agreement, noting that it met all the statutory requirements and was in the best interests of both parties.

The tribunal's final orders approved the Entura Enterprise Agreement 2020-2021, effective from the date of the decision. This approval was contingent on the agreement being registered with the Fair Work Commission, as required by the Fair Work Act. The decision underscored the importance of fair and reasonable terms in enterprise agreements and the role of the tribunal in ensuring compliance with statutory obligations.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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