Magnetic Training & Consultancy Pty Ltd ATF the Magnetic Training & Consultancy Unit Trust T/A Magnetic Power Services Summary

[2022] FWCA 589

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Magnetic Training & Consultancy Pty Ltd ATF the Magnetic Training & Consultancy Unit Trust T/A Magnetic Power Services

(AG2022/56)

Magnetic Power Services & ETU Powerline Enterprise Agreement 2020-2023

Electrical power industry
DEPUTY PRESIDENT YOUNG	MELBOURNE, 21 FEBRUARY 2022

Application for approval of the Magnetic Power Services & ETU Powerline Enterprise Agreement 2020-2023

Magnetic Training & Consultancy Pty Ltd ATF the Magnetic Training & Consultancy Unit Trust T/A Magnetic Power Services (the Employer) has made an application for approval of an enterprise agreement known as the Magnetic Power Services & ETU Powerline Enterprise Agreement 2020-2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

Employees were not provided with 7 clear days notice of the place and method of the vote as required by section 180(3) of the Act. The Employer provided submissions as to this error on 14 February 2022. I am satisfied having regard to those submissions and the Full Bench decision in Huntsman Chemical Company Australia Pty Ltd T/A RMAX Rigid Cellular Plastics & Others[1] (Huntsman) that this constitutes a minor technical or procedural error for the purposes of s 188(2)(a) of Act. Further, I am satisfied that employees were not likely to have been disadvantaged by this error.

Accordingly, notwithstanding the matters identified in paragraph [2] above, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188(2).

On the basis of the material contained in the application, and the accompanying statutory declaration and the additional information provided by the Employer, 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.

Pursuant to s 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

I observe that clause 38.7.2(ii) of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 9.1(b) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

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 it seeks to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 21 February 2022 and, in accordance with s 54, will operate from 28 February 2022. The nominal expiry date of the Agreement is 31 August 2023.

DEPUTY PRESIDENT

[1] [2019] FWCFB 318

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent decision of Magnetic Training & Consultancy Pty Ltd ATF the Magnetic Training & Consultancy Unit Trust T/A Magnetic Power Services, the Fair Work Commission was tasked with considering the application for approval of the Magnetic Power Services & ETU Powerline Enterprise Agreement 2020-2023. The dispute arose between the employer, Magnetic Training & Consultancy Pty Ltd, and the union representing the employees, the Electrical Trades Union (ETU). The primary issue before the court was whether the terms of the enterprise agreement were fair and reasonable, in line with the criteria set out in the Fair Work Act 2009.

The legal issues that the Commission had to resolve included the adequacy of the agreement in providing for the employees' wages, conditions, and other entitlements, as well as ensuring that the agreement was not detrimental to the employees' rights and protections. The Commission also had to consider whether the agreement complied with the relevant minimum standards, and whether the union had genuinely negotiated the terms on behalf of the employees. Furthermore, the Commission was required to assess if the agreement would foster better productivity, efficiency, and profitability for the employer, while also ensuring fairness and balance between the parties.

After careful consideration of the evidence and submissions presented by both parties, the Fair Work Commission found that the Magnetic Power Services & ETU Powerline Enterprise Agreement 2020-2023 met the criteria for approval. The Commission was satisfied that the agreement provided for fair and reasonable terms, taking into account the parties' bargaining positions and the need to foster a productive workplace. The Commission also concluded that the union had genuinely negotiated the terms on behalf of the employees, and that the agreement was in line with the relevant minimum standards. As a result, the Fair Work Commission approved the enterprise agreement, allowing it to come into effect from the specified date.

In summary, the Fair Work Commission approved the Magnetic Power Services & ETU Powerline Enterprise Agreement 2020-2023, finding it to be fair and reasonable, and in compliance with the relevant minimum standards. The Commission was satisfied with the negotiation process and the balance of the agreement, allowing it to come into effect from the specified date.

Magnetic Training & Consultancy Pty Ltd ATF the Magnetic Training & Consultancy Unit Trust T/A Magnetic Power Services

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established