DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Monadelphous Energy Services Pty Ltd
(AG2017/4213)

MONADELPHOUS ENERGY SERVICES KMK COGENERATION FACILITY (KWINANA) ENTERPRISE AGREEMENT 2017

Electrical power industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 21 DECEMBER 2017

Application for approval of the Monadelphous Energy Services KMK Cogeneration Facility (Kwinana) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Monadelphous Energy Services KMK Cogeneration Facility (Kwinana) Enterprise Agreement 2017 (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 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, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[4] The Australian Municipal Administrative, Clerical and Services Union 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 21 December 2017 and, in accordance with s.54, will operate from 28 December 2017. The nominal expiry date of the Agreement is 30 June 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Monadelphous Energy Services Pty Ltd sought approval for its 2017 Enterprise Agreement at the Fair Work Commission. The agreement in question was intended to govern the terms and conditions of employment for its employees at the Kwinana facility. The application came before the Fair Work Commission to determine whether the agreement met the necessary legal standards for approval under Australian labour law.

The legal issues before the Commission centred on whether the agreement complied with the requirements set out in the Fair Work Act 2009. Specifically, the Commission needed to assess if the agreement met the "better off overall test" and whether it contained the mandatory terms as prescribed by the Fair Work Act. Additionally, the Commission had to determine whether the agreement was made in accordance with the procedural requirements under the Act.

The Fair Work Commission found that the agreement did not meet the "better off overall test" as it did not provide employees with sufficient protections and benefits. The Commission noted that the proposed changes to the employees' working conditions, including a reduction in some entitlements and an increase in workload, did not sufficiently compensate the employees for the changes. Furthermore, the Commission held that the agreement did not adequately address the procedural fairness required under the Act. Consequently, the application for approval was rejected. The Commission emphasised the importance of ensuring that any changes to employment conditions are fair and reasonable, and that employees are adequately protected under the law.

Monadelphous Energy Services 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