DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Monadelphous Engineering Pty Ltd
(AG2018/7082)

MONADELPHOUS ENGINEERING PTY LTD OPERATIONS, MAINTENANCE & MISCELLANEOUS SERVICES - QLD ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER RIORDAN	SYDNEY, 12 APRIL 2019

Application for approval of the Monadelphous Engineering Pty Ltd (Operations, Maintenance & Miscellaneous Services - QLD) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Monadelphous Engineering Pty Ltd Operations, Maintenance & Miscellaneous Services - QLD Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Monadelphous Engineering 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 Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 April 2019. The nominal expiry date of the Agreement is 12 April 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Monadelphous Engineering Pty Ltd, an employer, and two unions, the Construction, Forestry, Maritime, Mining and Energy Union and the Electrical Trades Union, applied to the Fair Work Commission for approval of an enterprise agreement. The agreement was to govern the terms and conditions of employment for certain employees in the Queensland operations of Monadelphous Engineering Pty Ltd. The unions argued the agreement should be approved as it was fairly negotiated and met the requirements of the Fair Work Act 2009. Monadelphous Engineering Pty Ltd, while not opposing the agreement in principle, raised concerns about certain provisions related to shift patterns and penalty rates.

The central legal issue before the Commission was whether the enterprise agreement complied with the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was genuinely negotiated, met the "better off overall test" and was compliant with the relevant provisions of the Act. The Commission also had to consider if any provisions in the agreement unfairly disadvantaged employees or employers. Monadelphous Engineering Pty Ltd argued that certain provisions relating to shift patterns and penalty rates did not meet these criteria and could potentially lead to significant operational challenges.

The Fair Work Commission found that the enterprise agreement was genuinely negotiated and met the "better off overall test". The Commission held that the agreement provided for fair and reasonable terms and conditions of employment. The Commission noted that while some provisions raised legitimate concerns about operational flexibility and cost management, they did not fundamentally breach the statutory requirements for approval. The Commission concluded that the benefits of the agreement, including improved working conditions and certainty for employees, outweighed any potential disadvantages to the employer. Consequently, the Commission approved the enterprise agreement, finding it to be fair and reasonable.

The Fair Work Commission approved the Monadelphous Engineering Pty Ltd (Operations, Maintenance & Miscellaneous Services - QLD) Enterprise Agreement 2019, effective from the date of the decision. The approval ensures that the terms and conditions of employment for the relevant employees are governed by the provisions of the agreement, subject to any applicable laws and regulations.

Monadelphous Engineering 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