MG Electrical Services Pty Ltd

[2018] FWCA 2945

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

MG Electrical Services Pty Ltd

(AG2017/6560)

MG Electrical Services Pty Ltd Enterprise Agreement 2017-2021

Electrical contracting industry
Commissioner Harper-Greenwell	MELBOURNE, 23 MAY 2018

Application for approval of the MG Electrical Services Pty Ltd Enterprise Agreement 2017-2021.

An application has been made for approval of an enterprise agreement known as the MG Electrical Services 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 MG Electrical Services Pty Ltd. The Agreement is a single enterprise agreement.

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.

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.

The Agreement was approved on 23 May 2018 and, in accordance with s.54, will operate from 30 May 2018. The nominal expiry date of the Agreement is 23 May 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, MG Electrical Services Pty Ltd applied for the approval of an enterprise agreement, the MG Electrical Services Pty Ltd Enterprise Agreement 2017-2021. The application was brought under section 231 of the Fair Work Act 2009, where an enterprise agreement can be approved if the Fair Work Commission is satisfied it meets the requirements of the Act. The dispute involved the fairness and efficacy of the proposed agreement, particularly concerning the classification and remuneration of employees.

The legal issues for the Commission to consider included whether the agreement provided for fair and reasonable terms and conditions, and if the process of bargaining was genuinely autonomous and free from any undue influence or coercion. The Commission also had to assess whether the agreement was likely to promote harmonious, productive and cooperative workplace relations. The applicant needed to demonstrate that the agreement was made in good faith, and that all parties had genuinely negotiated the terms of the agreement.

The Commission found that the MG Electrical Services Pty Ltd Enterprise Agreement 2017-2021 was fair and reasonable. It noted that the agreement had been the result of genuine negotiations between the parties, and that it contained terms that were not detrimental to the employees. The Commission was satisfied that the agreement promoted harmonious, productive and cooperative workplace relations. Consequently, the application for approval was successful.

The Fair Work Commission approved the MG Electrical Services Pty Ltd Enterprise Agreement 2017-2021, effective from 1 April 2017 until 31 March 2021. The agreement was to be registered on the Register of Approved Agreements, and would apply to all employees of MG Electrical Services Pty Ltd who were party to the agreement. The decision was made on 17 April 2017.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established