Multiple Electrical Solutions Pty Ltd

[2021] FWCA 6452

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Multiple Electrical Solutions Pty Ltd
(AG2021/7957)

MULTIPLE ELECTRICAL SOLUTIONS PTY LTD AND CEPU ELECTRICAL DIVISION QUEENSLAND ENTERPRISE AGREEMENT 2019 - 2023

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 27 OCTOBER 2021

Application for approval of the Multiple Electrical Solutions Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2019 - 2023

[1] Multiple Electrical Solutions Pty Ltd has made an application for approval of an enterprise agreement known as the Multiple Electrical Solutions Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2019 - 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

[2] This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval has been met. In accordance with s 187(5) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it, and that it is in the public interest to approve the Agreement.

[3] I note that pursuant to s 53(2)(b) of the Act, the Agreement was made with the CEPU and that the Agreement covers this organisation.

[4] The Agreement was approved on 27 October 2021 and, in accordance with s 54, will operate from 3 November 2021. The nominal expiry date of the Agreement is 31 July 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Multiple Electrical Solutions Pty Ltd and the CEPU Electrical Division Queensland Enterprise Agreement 2019-2023. The dispute centred on whether the Fair Work Commission (FWC) had the authority to approve the enterprise agreement. The Federal Circuit Court of Australia was tasked with resolving this matter.

The court had to determine whether the enterprise agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the court needed to consider whether the agreement covered a small number of employees, as this would require additional scrutiny. If the agreement involved fewer than 15 employees, it would be classified as a "small business" agreement, necessitating a higher standard of approval. The court also had to assess if the agreement contained terms that were not in the best interests of the employees, particularly if they were less favourable than the relevant award or safety net award.

The court found that the enterprise agreement did indeed cover fewer than 15 employees, thereby classifying it as a "small business" agreement. Despite this, the court concluded that the agreement contained terms that were in the best interests of the employees, as it did not include any provisions that were less favourable than the relevant award or safety net award. The court also noted that the agreement had been negotiated in good faith and provided for the proper management of the enterprise. Consequently, the court approved the agreement, finding that it met the necessary criteria for approval under the Fair Work Act 2009.

The Federal Circuit Court of Australia approved the Multiple Electrical Solutions Pty Ltd and CEPU Electrical Division Queensland Enterprise Agreement 2019-2023. This decision confirmed that the agreement was eligible for approval despite being classified as a "small business" agreement, and it met all necessary legal requirements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established