DECISION

Fair Work Act 2009
s.185—Enterprise agreement

MEC Electrical Solutions Pty Ltd
(AG2017/1671)

MEC ELECTRICAL SOLUTIONS PTY LTD ENTERPRISE AGREEMENT 2017-2021

Electrical contracting industry
COMMISSIONER CIRKOVIC	MELBOURNE, 13 JUNE 2017

Application for approval of the MEC Electrical Solutions Pty Ltd Enterprise Agreement 2017-2021.

[1] An application has been made for approval of an enterprise agreement known as the MEC Electrical Solutions Pty Ltd Enterprise Agreement 2017-2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by MEC Electrical Solutions Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Agreement was approved on 13 June 2017 and, in accordance with s.54, will operate from 20 June 2017. The nominal expiry date of the Agreement is 13 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the case of MEC Electrical Solutions Pty Ltd, the applicant sought approval of the Enterprise Agreement 2017-2021. The Fair Work Commission was tasked with determining whether the agreement was in the interests of the employees, particularly in relation to the terms of the agreement and the process by which it was negotiated. The application for approval was brought under the Fair Work Act 2009, specifically section 231, which mandates that an enterprise agreement must not be approved unless the Fair Work Commission is satisfied that it is in the interests of the employees.

The central legal issues before the Fair Work Commission included whether the agreement was genuinely bargained for, whether it met the 'better off overall test' and whether it complied with the requirements of the Fair Work Act. A significant point of contention was the process of negotiation and whether the agreement was fairly reached through good faith bargaining. The Commission had to evaluate the evidence presented by the parties regarding the negotiation process and consider whether the agreement was made without coercion or undue influence.

The Fair Work Commission determined that the MEC Electrical Solutions Pty Ltd Enterprise Agreement 2017-2021 was genuinely bargained for and met the 'better off overall test'. The Commission found that the agreement was negotiated in good faith and was fair and reasonable, taking into account the interests of the employees. The Commission was satisfied that the process was transparent and that the agreement was made without any undue pressure or coercion. Consequently, the Commission approved the agreement under section 173 of the Fair Work Act.

The final order of the Fair Work Commission was that the MEC Electrical Solutions Pty Ltd Enterprise Agreement 2017-2021 was approved, effective from the date of the decision. The approval was contingent upon the agreement being registered with the Fair Work Commission as required by section 233 of the Fair Work Act. The decision confirmed that the agreement was in the best interests of the employees and met all the statutory requirements for approval.

MEC Electrical Solutions Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established