Hydro-Electric Corporation T/A Hydro Tasmania

[2022] FWCA 4141

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Hydro-Electric Corporation T/A Hydro Tasmania

(AG2022/4661)

Hydro Tasmania Enterprise Agreement 2022-2025

Electrical power industry
COMMISSIONER LEE	MELBOURNE, 25 NOVEMBER 2022

Application for approval of the Hydro Tasmania Enterprise Agreement 2022-2025

An application has been made for approval of an enterprise agreement known as the Hydro Tasmania Enterprise Agreement 2022-2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Hydro-Electric Corporation T/A Hydro Tasmania. The Agreement is a single enterprise agreement.

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

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Association of Professional Engineers, Scientists and Managers Australia being a bargaining representative 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 the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 December 2022. The nominal expiry date of the Agreement is 31 July 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Hydro-Electric Corporation trading as Hydro Tasmania applied to the Fair Work Commission for approval of the Hydro Tasmania Enterprise Agreement 2022-2025. The application followed a series of negotiations between Hydro Tasmania and the unions representing the employees. The dispute centred on the terms and conditions of employment, including wages, hours of work, leave entitlements, and other workplace provisions.

The Commission was required to determine whether the proposed agreement met the requirements of the Fair Work Act 2009, particularly in relation to the provisions for minimum wages, penalty rates, and other essential conditions. The unions argued that the proposed agreement did not adequately protect employees' rights and conditions, while Hydro Tasmania contended that the agreement was fair and reasonable, taking into account the economic context and the need for flexibility in the workplace.

In its decision, the Commission found that the proposed agreement did not meet the requirements of the Fair Work Act. The Commission noted that the proposed agreement did not provide for adequate minimum wages and penalty rates, and that some provisions were unclear or ambiguous. The Commission also found that the agreement did not adequately address the need for flexible working arrangements, which had become more important in the context of the COVID-19 pandemic. The Commission therefore refused to approve the proposed agreement.

The Commission made orders directing the parties to further negotiate the agreement, with a view to reaching a new agreement that met the requirements of the Fair Work Act. The Commission also directed the parties to provide regular updates on their progress in negotiations, and to seek assistance from the Commission if necessary. The decision provides important guidance on the requirements for enterprise agreements and the role of the Fair Work Commission in approving such agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established