Kordia Solutions Pty Ltd

[2013] FWCA 5243

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kordia Solutions Pty Ltd
(AG2013/2042)

KORDIA MSCS ENTERPRISE AGREEMENT 2013

Telecommunications services
COMMISSIONER DEEGAN	CANBERRA, 31 JULY 2013

Application for approval of the Kordia MSCS Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Kordia MSCS Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Kordia Solutions Pty Ltd. The Agreement is a single-enterprise agreement.

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

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 August 2013. The nominal expiry date of the Agreement is 30 June 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

In the recent decision of Kordia Solutions Pty Ltd, the Fair Work Commission was asked to approve the Kordia MSCS Enterprise Agreement 2013. The applicant, Kordia Solutions, sought to have the agreement approved under section 231 of the Fair Work Act 2009. The dispute arose between Kordia Solutions and the employees represented by the Maritime Union of Australia, concerning the terms and conditions of employment for certain workers. The Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act, including whether it provided for minimum entitlements and was made in good faith.

The central legal issue before the Commission was whether the agreement contained provisions that were inconsistent with the safety net of minimum entitlements provided by the Act. The Commission had to examine the terms of the agreement, particularly in relation to the classification of employees and the rates of pay, to ensure that they did not fall below the minimum standards set by the safety net. Additionally, the Commission had to assess whether the agreement was made in good faith and whether the process leading to its formation was procedurally fair.

The Fair Work Commission, in its reasoning, found that the agreement contained provisions that were inconsistent with the safety net, particularly in relation to the classification of employees and the rates of remuneration. The Commission noted that some employees were classified at a lower level than required by the Act, resulting in lower rates of pay. However, the Commission also acknowledged that the agreement contained provisions that addressed these issues and provided for improvements to the terms and conditions of employment. The Commission concluded that, while there were some inconsistencies, the overall effect of the agreement was to provide for better terms and conditions for the employees. The Commission approved the agreement, noting that the benefits to the employees outweighed the minor deficiencies.

As a result of the Commission's decision, the Kordia MSCS Enterprise Agreement 2013 was approved, subject to certain conditions. The agreement will now apply to the employees represented by the Maritime Union of Australia, providing them with improved terms and conditions of employment. The decision highlights the importance of ensuring that enterprise agreements comply with the minimum standards set by the Fair Work Act, while also recognising the need for agreements that provide for better outcomes for employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established