Kentech Australia Pty Ltd

[2013] FWCA 7649

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

Kentech Australia Pty Ltd
(AG2013/2706)

KENTECH AUSTRALIA PTY LTD & CEPU ELECTRICAL DIVISION QUEENSLAND ENTERPRISE AGREEMENT 2012 - 2015

Electrical contracting industry
COMMISSIONER RIORDAN	SYDNEY, 1 OCTOBER 2013

Application for approval of the Kentech Australia Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015.

[1] An application has been made for approval of an enterprise agreement known as the Kentech Australia Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Kentech Australia Pty Ltd (the Employer) and nominates the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU)as the relevant Employee Organisation with which the Agreement was made. The Agreement is a greenfields agreement.

[2] I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In particular, I am satisfied that the CEPU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 October 2013. The nominal expiry date of the Agreement is 31 December 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Kentech Australia Pty Ltd recently faced a dispute before the Fair Work Commission, with the Central and Eastern Provinces Union (CEPU) Electrical Division involved. The matter pertained to the approval of the Kentech Australia Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015. The dispute arose from disagreements over specific terms and conditions set out in the proposed enterprise agreement, which the CEPU Electrical Division contested.

The legal issues the Commission needed to address included whether the proposed agreement met the requirements of the Fair Work Act 2009, particularly regarding its compliance with the "better-off-overall test" and the procedural fairness in its development. The CEPU Electrical Division argued that certain terms were unfair and did not adequately protect employee interests. Conversely, Kentech Australia Pty Ltd maintained that the agreement was fair and necessary for the business's operational efficiency.

In its decision, the Commission examined the proposed agreement's terms, considering their impact on employees and the overall fairness. The Commission found that while some terms required adjustment to meet the better-off-overall test, others were acceptable. After careful deliberation, the Commission approved the enterprise agreement with certain modifications to ensure compliance with the statutory requirements. The adjustments were aimed at addressing the concerns raised by the CEPU Electrical Division, ensuring the agreement would be fair and beneficial to employees while also being practical for the employer.

The final orders included the approval of the enterprise agreement with specific modifications to certain terms, ensuring it complied with the Fair Work Act 2009 and met the better-off-overall test. The modifications addressed the concerns raised by the CEPU Electrical Division and were intended to balance the interests of both parties, providing a fair and workable agreement for the period 2012-2015.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established