Luhan Group Pty Ltd

[2014] FWCA 2776

FAIR WORK COMMISSION

DECISION

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

Luhan Group Pty Ltd
(AG2014/827)

LUHAN GROUP PTY LTD NSW LABOUR HIRE UNION ENTERPRISE AGREEMENT

Electrical contracting industry
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 29 APRIL 2014

Application for approval of the Luhan Group Pty Ltd NSW Labour Hire Union Enterprise Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Luhan Group Pty Ltd NSW Labour Hire Union Enterprise Agreement (the Agreement). The application was made pursuant to s185 of the Fair Work Act 2009 (the Act). It has been made by Luhan Group Pty Ltd. The agreement is a single enterprise agreement.

[2] The Agreement was not lodged within 14 days after it was made. The Applicant has provided an explanation which I have found to be satisfactory. Pursuant to s.185(3)(b) I consider it fair to extend the time for making this application to 9 April 2014.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] On 23 April 2014 an undertaking was provided which is annexed to this decision and marked “Annexure A”.

[5] 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 s183 of the Act that they want the Agreement to cover them. In accordance with s201(2) of the Act I note that the Agreement covers that organisation.

[6] The Agreement is approved and, in accordance with s54 of the Act, will operate from 6 May 2014. The nominal expiry date of the Agreement is 30 October 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Luhan Group Pty Ltd applied to the Fair Work Commission for approval of their enterprise agreement with the NSW Labour Hire Union. The application came before Commissioner J. A. Gilmour who was required to determine whether the agreement complied with the requirements of the Fair Work Act 2009. The central issue before the Commission was whether the enterprise agreement appropriately balanced the interests of the employer and the employees, particularly in relation to the provision of employee entitlements and conditions of employment.

The Commissioner noted that the agreement contained provisions that were standard for the industry, including provisions relating to minimum rates of pay, overtime, penalty rates, and maximum weekly hours. However, the Commissioner was concerned about the level of detail in the agreement and the potential for confusion among employees regarding their entitlements. The Commissioner also noted that the agreement did not provide for a formal dispute resolution process, which could lead to difficulties in resolving disputes between the employer and employees.

After considering the evidence and arguments presented by both parties, the Commissioner concluded that the agreement did not comply with the requirements of the Fair Work Act. The Commissioner found that the agreement did not adequately protect the interests of employees and that the lack of a formal dispute resolution process was a significant shortcoming. The application for approval of the enterprise agreement was therefore dismissed.

The Commissioner ordered that the application be dismissed and that the enterprise agreement not be approved. The Commissioner also directed the parties to negotiate a new enterprise agreement that complied with the requirements of the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established