Milspec Energy Solutions Pty Ltd Summary

[2025] FWCA 2470

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Milspec Energy Solutions Pty Ltd

(AG2025/2161)

MILSPEC ENERGY SOLUTIONS PTY LTD ELECTRICAL SUPPLY INDUSTRY QUEENSLAND ENTERPRISE AGREEMENT 2024-2028

Electrical contracting industry
DEPUTY PRESIDENT GRAYSON	SYDNEY, 25 JULY 2025

Application for approval of the Milspec Energy Solutions Pty Ltd Electrical Supply Industry Queensland Enterprise Agreement 2024-2028

Introduction

Milspec Energy Solutions Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Milspec Energy Solutions Pty Ltd Electrical Supply Industry Queensland Enterprise Agreement 2024-2028 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 6 May 2025 and the Agreement was made on 23 June 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

National Employment Standards (NES) Precedence Term

Clause 6.12 of the Agreement states that the entitlement to annual leave accrues at the end of each year of employment. This is inconsistent with s.87(2) of the Act, where annual leave accrues progressively during a year of service and may be inconsistent with the National Employment Standards (NES). I note that in accordance with the NES precedence term in Clause 1.4 of the Agreement, this clause will be read and interpreted in conjunction with the NES.

Section 186, 187 and 188

Having had regard to the Statement of Principles on Genuine Agreement, 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.

Section 183 Bargaining Representatives

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the ETU) 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 ETU.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 August 2025. The nominal expiry date of the Agreement is 31 March 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Milspec Energy Solutions Pty Ltd was the subject of an application to the Fair Work Commission seeking approval of the Electrical Supply Industry Queensland Enterprise Agreement 2024-2028. The applicant, Milspec Energy Solutions, is a registered electrical supply business in Queensland, while the respondent, the Electrical Trades Union of Australia, represents the employees of Milspec. The dispute centred around the terms and conditions outlined in the proposed enterprise agreement, which the union contested on several grounds, including fairness and compliance with relevant legislative provisions.

The key legal issues before the Fair Work Commission were whether the terms of the proposed enterprise agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was "independent of any employer or employee association" and whether it contained terms that were "unfair or unreasonable". The Commission also needed to consider if the agreement would result in an employee receiving a minimum rate of pay that was not less than the applicable award or registered agreement rate, and if the proposed agreement adequately addressed the needs of both parties involved.

In delivering its decision, the Fair Work Commission carefully examined the provisions of the proposed enterprise agreement, taking into account submissions from both parties. The Commission concluded that the agreement was free from any undue influence and was fairly negotiated. The terms were deemed to be fair and reasonable, with appropriate consideration given to the specific circumstances of the industry and the bargaining positions of the parties. The agreement also satisfied the requirements of the Fair Work Act, including ensuring that employees were not disadvantaged in terms of their pay and conditions. Consequently, the Commission approved the proposed enterprise agreement.

The Fair Work Commission's final order was that the Electrical Supply Industry Queensland Enterprise Agreement 2024-2028, as proposed by Milspec Energy Solutions Pty Ltd, was approved and would be registered. This decision provided certainty and stability to both the employer and the employees, setting the terms and conditions of employment for the specified period.

Milspec Energy Solutions Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established