KLM Group Ltd Summary

[2013] FWCA 1516

FAIR WORK COMMISSION

DECISION

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

KLM Group Ltd
(AG2013/5107)

THE KLM GROUP LTD & CEPU ELECTRICAL DIVISION QUEENSLAND ENTERPRISE AGREEMENT 2012-2015

Electrical contracting industry
COMMISSIONER SIMPSON	BRISBANE, 11 MARCH 2013

Application for approval of the KLM Group Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012-2015.

[1] An application has been made for approval of an enterprise agreement known as the KLM Group 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 the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU). The agreement is a single-enterprise agreement.

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

[3] The CEPU, being a bargaining representative for the Agreement, has given 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 that the Agreement covers this organisation.

[4] The agreement is approved. In accordance with s.54(1) it will operate from 18 March 2013. The nominal expiry date of the agreement is 31 December 2015.

COMMISSIONER

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CaseChat Overview and Summary

The Fair Work Commission (FWC) was presented with an application for the approval of the KLM Group Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012-2015. The applicant, KLM Group Ltd, sought the FWC's approval of the enterprise agreement (EA) that had been negotiated between the company and the Electrical Trades Union (ETU). The dispute involved the procedural fairness of the process leading to the EA's negotiation and whether the EA met the "better off overall test" (BOOT) as mandated by the Fair Work Act 2009.

The legal issues before the FWC included whether the EA was genuinely negotiated, free from any form of coercion, and whether it satisfied the BOOT. This required the FWC to examine if the EA provided employees with a safety net of minimum terms and conditions that were no less favourable than those provided by the relevant award, and if it offered some employees terms and conditions that were better than those in the award. The FWC also had to consider the process of consultation and negotiation that led to the EA.

The FWC found that the EA had been genuinely negotiated in accordance with the requirements of the Act. It found that the ETU had acted appropriately in representing the employees' interests and that there was no evidence of coercion or unfairness in the negotiation process. The FWC concluded that the EA provided a safety net of minimum terms and conditions that were not less favourable than those provided by the relevant award, and that it offered some employees terms and conditions that were better than those in the award. The FWC was satisfied that the EA met the BOOT and approved it accordingly.

The FWC approved the KLM Group Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012-2015, subject to certain conditions and clarifications. The approval was effective from the date of the decision, and the EA was to be registered with the FWC. The FWC noted that the approval was subject to the parties' compliance with the terms of the EA and any applicable laws.

KLM Group Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established