| [2023] FWCA 2267 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Interstate Electrical Service Pty. Ltd.
(AG2023/2291)
INTERSTATE ELECTRICAL SERVICE PTY LTD SINGLE ENTERPRISE AGREEMENT 2023
| Electrical contracting industry | |
| COMMISSIONER PLATT | ADELAIDE, 24 JULY 2023 |
Application for approval of the Interstate Electrical Service Pty Ltd Single Enterprise Agreement 2023
An application has been made for approval of an enterprise agreement known as the Interstate Electrical Service Pty Ltd Single Enterprise Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Interstate Electrical Service Pty. Ltd. (the Applicant). The agreement is a single enterprise agreement.
The matter was allocated to my Chambers on 17 July 2023.
On 20 July 2023, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and undertakings provided by the Applicant prior to the Conference.
There is one National Employment Standard (NES) issue that requires comment:
· Clause 40.2.3 states that if the Employee fails to give notice the Applicant has the right to withhold monies due to the Employee to a maximum amount equal to the basic periodic rate of pay for the period of notice. As it does not specify if this deduction would be from the employee’s wages only, it raises an issue of deductions being made from the employee’s entitlements under the NES.
Clause 8.3 of the Agreement acts as an effective NES precedence clause. As a result of the NES precedence clause, clause 40.2.3 will not apply to the extent that it is inconsistent with the NES.
The Applicant has submitted an undertaking in the required form dated 20 July 2023. The undertaking deals with the following topics:
· Despite clauses 10.2.5 and 17, the Applicant will not employ Trainees for the life of the Agreement.
· Clause 29.1.1 will be inserted as follows:
29.1.1 Non-successive shifts
(b) An employee who works on an afternoon or night shift (shifts finishing between 6pm and 8am the next day) which does not continue for at least 5 successive afternoons or nights must be paid for such shift as follows:
(i) for a full-time or part-time employee, at 150% of the ordinary hourly rate for the first 2 hours and 200% of the ordinary hourly rate thereafter or
(ii) for a casual employee, at 187.5% of the ordinary hourly rate for the first 2 hours and 250% of the ordinary hourly rate thereafter.
A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives that responded, supported the undertaking.
The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.
I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.
The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 July 2027.
COMMISSIONER
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- AGLC
- Interstate Electrical Service Pty. Ltd. [2023] FWCA 2267
- Case
- [2023] FWCA 2267
- Decision Date
CaseChat Overview and Summary
The legal issues that the Commission had to resolve included whether the agreement was genuinely negotiated and whether the necessary procedural requirements were satisfied. The Commission had to examine whether the agreement was formed in good faith, and whether the process for its creation complied with the provisions of the Act. Additionally, the Commission needed to determine whether the agreement contained the required minimum terms and conditions of employment as stipulated by the Act.
In its decision, the Commission found that the agreement was genuinely negotiated and that the process followed complied with the requirements of the Fair Work Act. The Commission acknowledged the evidence presented by the company regarding the negotiation process and accepted that the agreement had been formed in good faith. The Commission also found that the agreement contained all the necessary minimum terms and conditions of employment. As a result, the Commission approved the application for registration of the agreement.
The Fair Work Commission's decision affirms the importance of adhering to the statutory requirements when negotiating and registering a single enterprise agreement. The Commission's approval of the Interstate Electrical Service Pty Ltd Single Enterprise Agreement 2023 will facilitate the company's operations by providing a clear and legally binding framework for the employment relationship between the company and its employees.
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