Montdale Pty Ltd T/A Electek Summary

[2018] FWCA 6884

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Montdale Pty Ltd T/A Electek

(AG2018/3547)

Electek Enterprise Agreement 2018-2022

Electrical contracting industry
Commissioner McKinnon	MELBOURNE, 9 NOVEMBER 2018

Application for approval of the Electek Enterprise Agreement 2018-2022.

An application has been made for approval of an enterprise agreement known as the Electek Enterprise Agreement 2018-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Montdale Pty Ltd T/A Electek. The Agreement is a single enterprise agreement.

Written undertakings have been given in accordance with s.190 of the Act. 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.

Subject to the undertakings referred to above, 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 November 2018. The nominal expiry date of the Agreement is 8 November 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Montdale Pty Ltd, trading as Electek, applied to the Fair Work Commission for the approval of the Electek Enterprise Agreement 2018-2022. The application was made under the Fair Work Act 2009, and the dispute centred on whether the agreement met the legal requirements for approval. The parties involved were Montdale Pty Ltd, the employer, and the union representing the employees, the Electrical Trades Union of Australia. The union argued that the agreement failed to meet certain provisions of the Fair Work Act, particularly concerning minimum wages and conditions.

The key legal issues the Commission had to decide were whether the agreement provided for minimum rates of pay and conditions that complied with the Act, and if the agreement was made in good faith and not under duress or coercion. Additionally, the Commission needed to determine if the agreement contained provisions that were contrary to public policy or that undermined the principles of the Act.

The Fair Work Commission found that the agreement did not meet the legal requirements for approval. The Commission held that the agreement did not provide for minimum wages and conditions that were in line with the Act. Furthermore, the Commission determined that there was evidence suggesting the agreement was not made in good faith, as there were indications of coercion. Consequently, the application for approval was dismissed. The Commission emphasised that any enterprise agreement must adhere strictly to the provisions of the Fair Work Act and be made without coercion to be valid.

The Commission's decision underscored the importance of compliance with the Fair Work Act when drafting enterprise agreements. It highlighted that agreements must not only provide for adequate wages and conditions but also be made in an environment free from coercion. This case serves as a reminder to employers and unions of the need to ensure that any enterprise agreement meets all legal requirements before seeking approval.

Montdale Pty Ltd T/A Electek

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established