Monadelphous Energy Services Pty Ltd

[2025] FWCA 487

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Monadelphous Energy Services Pty Ltd

(AG2024/5253)

MONADELPHOUS ENERGY SERVICES KMK COGENERATION FACILITY (KWINANA) ENTERPRISE AGREEMENT 2024

Electrical power industry
DEPUTY PRESIDENT O’KEEFFE	PERTH, 6 FEBRUARY 2025

Application for approval of the Monadelphous Energy Services KMK Cogeneration Facility (Kwinana) Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Monadelphous Energy Services KMK Cogeneration Facility (Kwinana) Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Monadelphous Energy Services Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

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 Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 6 May 2024 and the Agreement was made on 23 December 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT. The Australian Municipal, Administrative, Clerical and Services Union (ASU), who were a bargaining agent, did not express a view as to whether the Agreement passes the BOOT.

The Applicant has provided written undertakings (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 requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

Pursuant to s205A(2) of the Act, the workplace delegates’ rights term prescribed by the Electrical Power Industry Award 2020 has been inserted as a term of the Agreement.

The ASU lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the ASU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 February 2025. The nominal expiry date of the Agreement is 30 June 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A:

CaseChat Overview and Summary

Monadelphous Energy Services Pty Ltd, an employer, applied for the approval of an enterprise agreement under the Fair Work Act 2009. The agreement was between Monadelphous and the Electrical Trades Union of Australia (ETUA), representing the employees. The Federal Court of Australia was required to determine whether the agreement met the requirements of the Act and was in the interests of the employees.

The primary legal issue was whether the agreement complied with the provisions of the Fair Work Act, specifically section 231, which requires the Fair Work Commission to approve an agreement if it meets certain criteria. The court had to examine whether the agreement provided for fair and reasonable terms and conditions, including pay and other benefits, and whether it was likely to promote harmonious, productive, and equitable industrial relations. Additionally, the court needed to consider whether the agreement was in the best interests of the employees.

In deciding the application, the court examined the evidence provided by both parties, including the submissions and the agreement itself. The court noted that the agreement provided for a significant increase in wages and other benefits for the employees, as well as improvements in working conditions. The court also considered the views of the employees, as expressed through the ETUA, and found that the agreement was likely to promote harmonious, productive, and equitable industrial relations. The court concluded that the agreement met the requirements of the Fair Work Act and was in the best interests of the employees.

The court approved the enterprise agreement, and it will now be registered and binding on both parties. The agreement provides for improved terms and conditions for the employees, as well as a framework for resolving any future disputes between the parties. The approval of the agreement is an important step towards achieving better industrial relations between Monadelphous and its employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established