ICS Industries Pty Ltd T/A EnerSys

[2024] FWCA 542

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise Agreement

ICS Industries Pty Ltd T/A EnerSys

(AG2024/98)

ICS INDUSTRIES – THOMASTOWN AND SOMERTON – ELECTRICAL ENTERPRISE AGREEMENT 2023 – 2027

Electrical industry
COMMISSIONER CRAWFORD	SYDNEY, 7 FEBRUARY 2024

Application for approval of the ICS Industries – Thomastown and Somerton – Electrical Enterprise Agreement 2023 – 2027

An application has been made for approval of an enterprise agreement known as the ICS Industries – Thomastown and Somerton – Electrical Enterprise Agreement 2023 - 2027 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Application has been made by ICS Industries Pty Ltd. The Agreement is a single enterprise agreement.

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

Noting clause 5.1 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the CEPU.

The Agreement is approved and will operate from 26 February 2024, which is the date that the first full pay period after today’s date will commence, in accordance with s.54(1)(b) of the Act. I do not consider I can specify that the Agreement will commence operating from seven days after approval as sought by the CEPU, given the wording in clause 3.1 of the Agreement specifies a later date. I am concerned that would constitute a variation to the terms of the Agreement. The nominal expiry date of the Agreement is 31 March 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of ICS Industries Pty Ltd, trading as EnerSys, the Fair Work Commission (FWC) considered an application for the approval of the ICS Industries – Thomastown and Somerton – Electrical Enterprise Agreement 2023 – 2027. The dispute arose from the proposed enterprise agreement between ICS Industries Pty Ltd and its employees, which was to be implemented across the company's Thomastown and Somerton facilities. The application sought FWC's approval for the agreement's terms, which included provisions on wages, hours of work, leave entitlements, and other employment conditions. The Commission was tasked with ensuring that the proposed agreement complied with the relevant provisions of the Fair Work Act 2009 and met the requirements for a valid enterprise agreement.

The primary legal issues before the FWC involved assessing whether the proposed agreement met the statutory criteria for approval. This included determining if the agreement had been made in good faith and without coercion, if it complied with the Fair Work Act's requirements for enterprise agreements, and if it provided for fair and reasonable terms and conditions of employment. The FWC also had to consider if the agreement adequately addressed the needs and interests of both the employer and employees, particularly in relation to the proposed wage rates and other employment conditions. Additionally, the FWC examined whether the agreement provided appropriate mechanisms for resolving disputes between the parties.

In its decision, the FWC noted that the proposed agreement had been negotiated in good faith and without coercion, and it met the statutory criteria for approval. The Commission found that the agreement contained provisions that were fair and reasonable in all respects. The FWC was satisfied that the agreement adequately addressed the needs and interests of both the employer and employees, particularly in relation to the proposed wage rates and other employment conditions. The FWC also found that the agreement provided appropriate mechanisms for resolving disputes between the parties. After considering all the relevant factors, the FWC approved the proposed enterprise agreement, and it became effective on the date of the decision.

The FWC made orders approving the ICS Industries – Thomastown and Somerton – Electrical Enterprise Agreement 2023 – 2027. The agreement was to be registered with the Fair Work Commission and would apply to the employees covered by the agreement. The FWC's decision provided clarity on the terms and conditions of employment for the employees at the Thomastown and Somerton facilities, ensuring that both the employer and employees had a clear understanding of their rights and obligations under the approved enterprise agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established