Monadelphous Energy Services Pty Ltd

[2013] FWCA 7098

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Monadelphous Energy Services Pty Ltd
(AG2013/2857)

MONADELPHOUS ENERGY SERVICES KMK COGENERATION FACILITY (KWINANA) ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 19 SEPTEMBER 2013

Application for approval of the Monadelphous Energy Services KMK Cogeneration Facility (Kwinana) Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Monadelphous Energy Services KMK Cogeneration Facility (Kwinana) Enterprise Agreement 2013 (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] 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.

[3] 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), I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54, will operate from 26 September 2013. The nominal expiry date of the Agreement is 30 June 2014.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicants, Monadelphous Energy Services Pty Ltd, sought the Fair Work Commission's approval of the Monadelphous Energy Services KMK Cogeneration Facility (Kwinana) Enterprise Agreement 2013. The application arose after the parties negotiated an agreement which was to apply to certain employees of Monadelphous Energy Services, being those who were members of the Electrical Trades Union of Australia. The application was opposed by the Electrical Trades Union of Australia. The central legal issue was whether the agreement complied with the requirements of the Fair Work Act 2009. Specifically, the Court was required to determine whether the agreement had been fairly negotiated and whether it satisfied the "better off overall test".

The Fair Work Commission found that the agreement had been fairly negotiated, as the union and the employer had engaged in genuine bargaining, and the union had provided the employer with information about its members' needs and aspirations. The Commission also found that the agreement satisfied the "better off overall test", as it provided for a range of benefits for employees, including wage increases and improvements to leave entitlements and other conditions of employment. The Commission was satisfied that the overall benefit to employees outweighed any potential disadvantages.

Accordingly, the Commission approved the agreement. The Court emphasised the importance of enterprise agreements in promoting harmonious industrial relations and in providing for the fair and efficient resolution of workplace issues. The Court noted that the agreement in question provided for a number of benefits for employees, and that these benefits were achieved through a process of genuine and meaningful bargaining between the parties.

The Fair Work Commission approved the agreement and made an order accordingly. The order approved the agreement and directed that it be registered with the Registrar of the Fair Work Commission. The order also provided for the agreement to come into effect on a specified date.

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established