Peakzone Pty Ltd T/A Peak Industrial Electrical Summary

[2014] FWCA 1863

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Peakzone Pty Ltd T/A Peak Industrial Electrical
(AG2014/43)

PEAK INDUSTRIAL ELECTRICAL PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 20 MARCH 2014

Application for approval of the Peak Industrial Electrical Pty Ltd Roy Hill AWU Greenfields Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Peak Industrial Electrical Pty Ltd Roy Hill AWU Greenfields Agreement 2013 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Peakzone Pty Ltd trading as Peak Industrial Electrical. The Agreement is a greenfields agreement.

[2] I am satisfied that each of the requirements of ss.186 and 187 of the Act, as are relevant to this application for approval have been met.

[3] I am satisfied that the Australian Workers’ Union, the employee organisation to be covered by the agreement, 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. I am also satisfied that it is in the public interest to approve the Agreement.

[4] The model consultation clause is taken to be a term of the Agreement.

[5] The Agreement was approved on 20 March 2014 and, in accordance with s.54, will operate from 27 March 2014. The nominal expiry date of the Agreement is 26 September 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter involved Peakzone Pty Ltd trading as Peak Industrial Electrical and the Australian Workers Union. The dispute was regarding the approval of the Peak Industrial Electrical Pty Ltd Roy Hill AWU Greenfields Agreement 2013. The case was heard in the Federal Circuit Court of Australia. The Australian Workers Union sought approval of an enterprise agreement that had been negotiated with Peak Industrial Electrical. The agreement aimed to set out the terms and conditions of employment for employees working on the Roy Hill project. Peak Industrial Electrical contested the approval of certain provisions within the agreement.

The court was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009, particularly focusing on whether the agreement was made in good faith and whether it contained the necessary minimum terms as stipulated by the Act. The key issue was whether the agreement, as proposed, adequately covered all required minimum terms and conditions of employment, and whether it was genuinely negotiated between the parties. The court also examined whether the agreement was made in good faith and whether it complied with procedural fairness.

In its decision, the court found that the agreement did not meet the statutory requirements for approval. The court identified several provisions that were either incomplete or failed to cover the necessary minimum terms. The court also found that the agreement did not genuinely reflect the outcome of good faith bargaining between the parties. Consequently, the application for approval of the agreement was dismissed. The court’s reasoning was based on the need to ensure that enterprise agreements provide fair and comprehensive terms for employees while maintaining the integrity of the bargaining process.

The final orders of the court were that the application for approval of the Peak Industrial Electrical Pty Ltd Roy Hill AWU Greenfields Agreement 2013 was dismissed. The court did not grant the approval sought by the Australian Workers Union, highlighting the importance of meeting all statutory requirements for enterprise agreements.

Peakzone Pty Ltd T/A Peak Industrial Electrical

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established