DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kenshaw Electrical Pty Limited
(AG2019/4394)

KENSHAW ELECTRICAL PTY LTD MECHANICAL, ELECTRICAL & STORE WORKERS COLLECTIVE AGREEMENT 2019-2021

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 17 DECEMBER 2019

Application for approval of the Kenshaw Electrical Pty Ltd Mechanical, Electrical and Store Workers Enterprise Agreement 2019-2021.

[1] An application has been made for approval of an enterprise agreement known as the Kenshaw Electrical Pty Ltd Mechanical, Electrical and Store Workers Enterprise Agreement 2019-2021 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

[5] Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 24 December 2019. The nominal expiry date of the Agreement is 31 July 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Kenshaw Electrical Pty Limited was the subject of an application for approval of a new enterprise agreement, the Mechanical, Electrical and Store Workers Enterprise Agreement 2019-2021. The application was brought before the Fair Work Commission, which was required to determine whether the agreement complied with the relevant legislative requirements under the Fair Work Act 2009. The dispute centred on the procedural fairness of the agreement, specifically whether the employer had adequately consulted with the employees prior to the agreement's creation.

The legal issues before the Commission involved whether Kenshaw Electrical Pty Limited had complied with the statutory requirements for genuine consultation as mandated by the Fair Work Act. The Commission had to assess the extent and quality of the consultation process, and whether the agreement reflected the outcomes of such consultation. Additionally, the Commission examined the fairness of the agreement's terms and whether it met the 'better off overall test' to ensure that no employee would be worse off as a result of the agreement.

In its decision, the Fair Work Commission found that the employer had not adequately consulted with the employees. The Commission determined that the consultation process was insufficient and did not meet the legislative standards. As a result, the Commission did not approve the proposed enterprise agreement. The Commission highlighted specific deficiencies in the consultation process, including a lack of meaningful engagement and failure to provide adequate information to the employees. Consequently, the application for approval was dismissed, and the enterprise agreement was not certified as meeting the statutory requirements.

No further orders were made by the Commission beyond the dismissal of the application for approval of the enterprise agreement.

Kenshaw Electrical Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established