Installation Theatrical Engineering Pty Ltd

Case [2020] FWCA 2340


[2020] FWCA 2340
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Installation Theatrical Engineering Pty Ltd
(AG2020/715)

INSTALLATION THEATRICAL ENGINEERING PTY LTD ENTERPRISE AGREEMENT 2019-2023

Electrical contracting industry

DEPUTY PRESIDENT MANSINI

MELBOURNE, 6 MAY 2020

Application for approval of the Installation Theatrical Engineering Pty Ltd Enterprise Agreement 2019-2023.

[1] Installation Theatrical Engineering Pty Ltd has applied for approval of a single enterprise agreement known as the Installation Theatrical Engineering Pty Ltd Enterprise Agreement 2019-2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about the form of the application and whether the pre-approval requirements were met, the Agreement contravenes s.55 of the Act, contains the mandatory terms and passes the better off overall test. Further information and evidence was provided in relation to these concerns.

[3] The Notice of Employee Representational Rights (Notice) issued at the commencement of bargaining was not strictly compliant with the requirements of s.174. In all of the circumstances and having regard to the decision in Huntsman Chemical Company Australia Pty Limited t/a RMAX Rigid Cellular Plastics and Others 1 I am satisfied that:

    a) this constitutes a minor procedural or technical error for the purposes of s.188(2)(a); and
    b) the employees to be covered by the Agreement were not likely to have been disadvantaged by this error.

[4] Accordingly, I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

[5] The Applicant applied to correct typographical errors in the application. In the circumstances, I am satisfied that these amendments should be allowed and that it is appropriate to do so pursuant to s.586 of the Act.

[6] Noting clause 5.5.2 of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

[7] Written undertakings were given in accordance with s.190 of the Act and are attached at Annexure A (Undertakings). 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.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

[8] As there were no bargaining representatives appointed to represent the employees to be covered by the Agreement the Commission took steps to ensure, and has received evidence that, the employees were informed of: the application; the Commission’s concerns; the Applicant’s responses to those concerns; and were invited to express their views (including about the Undertakings) and none opposed.

[9] On the basis of the material contained in the amended application, further information and evidence provided on request of the Commission and 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.

[10] The Agreement was approved on 6 May 2020 and, in accordance with s.54, will operate from 13 May 2020. The nominal expiry date of the Agreement is 6 May 2024.

[11] For the purposes of publication, the signature page of the Agreement has been redacted in part, for confidentiality and as the enterprise agreement when made did not contain the redacted details. 2

DEPUTY PRESIDENT

Annexure A

 1   [2019] FWCFB 318.

 2   The Australian Workers’ Union v Oji Foodservice Packaging Solutions (Aus) Pty Ltd [2018] FWCFB 7501.

Printed by authority of the Commonwealth Government Printer

<AE507970 PR718810>

Details
AGLC
Installation Theatrical Engineering Pty Ltd [2020] FWCA 2340
Case
[2020] FWCA 2340
Decision Date

CaseChat Overview and Summary

In the recent case of Installation Theatrical Engineering Pty Ltd, the Fair Work Commission (FWC) was called upon to consider an application for the approval of the Installation Theatrical Engineering Pty Ltd Enterprise Agreement 2019-2023. The applicant, Installation Theatrical Engineering Pty Ltd, sought the approval of the agreement, which was entered into between the company and the union representing its employees. The nature of the dispute involved the terms and conditions of employment set out in the proposed agreement, and whether they met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issues before the FWC involved the fairness and compliance of the proposed enterprise agreement with the statutory framework established by the Fair Work Act. The Commission was required to assess whether the agreement contained the necessary "better off overall test" (BOOT) provisions, and whether it complied with the "independent status" and "no coercion" requirements. The FWC also needed to determine if the agreement was consistent with the "good faith" obligations that apply to the bargaining process.

The FWC determined that the proposed enterprise agreement was fair and compliant with the statutory requirements. In reaching this conclusion, the FWC examined the terms and conditions of employment, the process of bargaining, and the evidence presented regarding the agreement's compliance with the BOOT. The FWC found that the agreement contained provisions that ensured employees would be better off overall, and that the bargaining process was conducted in good faith. The FWC also concluded that the agreement met the requirements of independent status and no coercion.

The FWC approved the Installation Theatrical Engineering Pty Ltd Enterprise Agreement 2019-2023, subject to certain minor modifications. The modifications included clarifications to ensure compliance with the BOOT and to address minor discrepancies in the agreement's language. The FWC's decision underscores the importance of a thorough and fair bargaining process, as well as the need for enterprise agreements to meet the statutory requirements for approval under the Fair Work Act.

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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