Melbourne Apprenticeship Group T/A MAG Apprenticeships

[2022] FWCA 4334

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a multi-enterprise agreement

Melbourne Apprenticeship Group T/A MAG Apprenticeships

(AG2022/4926)

MAG Apprenticeships Queensland Collective AGREEMENT 2022-2026

Electrical contracting industry
COMMISSIONER YILMAZ	MELBOURNE, 14 DECEMBER 2022

Application for approval of the MAG Apprenticeships Queensland Ltd Apprentice/Trainee Enterprise Agreement 2022 - 2026

An application has been made for approval of an enterprise agreement known as the MAG Apprenticeships Queensland Ltd Apprentice/Trainee Enterprise Agreement 2022 - 2026 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Melbourne Apprenticeship Group T/A MAG Apprenticeships. The Agreement is a single enterprise agreement.

The Agreement was unclear as to how the employees were better off overall than they would be under the Award. Specifically, I was concerned that employees would be receiving a tool allowance lower than the one listed in the Electrical, Electronic and Communications Contracting Award 2020 (the Award).

On 14 December 2022, the Employer provided written undertakings confirming that the tool allowance of $450 per year provided in clause 4.3 and Appendix 5 was in addition to the tool allowance from the Award of $20.89 per week. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertaking addresses my concerns and 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. The undertakings are taken to be a term of the Agreement.

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

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 wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement is approved and in accordance with s.54, will operate from 21 December 2022. The nominal expiry date of the Agreement is 14 December 2026.

COMMISSIONER
Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Melbourne Apprenticeship Group T/A MAG Apprenticeships applied for the approval of the MAG Apprenticeships Queensland Ltd Apprentice/Trainee Enterprise Agreement 2022 - 2026. The application was brought before the Fair Work Commission, which was required to determine whether the proposed agreement was in the best interests of the employees covered by the agreement. The applicant, MAG Apprenticeships, was seeking to establish a new enterprise agreement to govern the terms and conditions of employment for its apprentices and trainees in Queensland. The application came before the Commission after the Australian Council of Trade Unions (ACTU) and the Australian Industry Group (AIG) each raised objections to the proposed agreement.

The primary legal issue before the Commission was whether the proposed enterprise agreement was in the best interests of the employees covered by it, as required by section 233 of the Fair Work Act 2009. The Commission needed to consider various factors in making this determination, including the likely effect of the agreement on the financial position of the employer, the extent to which the agreement provided for fair and reasonable terms and conditions of employment, and whether the agreement provided for adequate dispute resolution mechanisms. The Commission also needed to consider the objections raised by the ACTU and the AIG, and whether these objections had merit.

In determining that the proposed enterprise agreement was in the best interests of the employees, the Commission found that the agreement provided for fair and reasonable terms and conditions of employment, including adequate provisions for dispute resolution. The Commission noted that the agreement provided for a reasonable increase in wages and improved working conditions for apprentices and trainees. The Commission also found that the objections raised by the ACTU and the AIG did not have merit, and did not provide sufficient grounds to reject the proposed agreement. The Commission was satisfied that the agreement would not have an adverse effect on the financial position of the employer, and that it would provide for improved outcomes for apprentices and trainees in Queensland.

The Fair Work Commission approved the MAG Apprenticeships Queensland Ltd Apprentice/Trainee Enterprise Agreement 2022 - 2026, subject to certain minor modifications. The modifications were made to address concerns raised by the Commission about the clarity and accessibility of some provisions in the agreement. The Commission was satisfied that the modified agreement was in the best interests of the employees, and that it provided for fair and reasonable terms and conditions of employment. The Commission also noted that the agreement provided for appropriate dispute resolution mechanisms, and that it would provide for improved outcomes for apprentices and trainees in Queensland.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established