Powercor Australia Ltd; CitiPower Pty Ltd Summary

[2021] FWCA 7278

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Powercor Australia Ltd; CitiPower Pty Ltd
(AG2021/8831)

POWERCOR AUSTRALIA LTD/CITIPOWER PTY LTD AND CEPU ENTERPRISE AGREEMENT 2020-2023

Electrical power industry
COMMISSIONER MCKINNON	MELBOURNE, 23 DECEMBER 2021

Application for approval of the Powercor Australia Ltd/CitiPower Pty Ltd and CEPU Enterprise Agreement 2020-2023.

[1] Powercor Australia Ltd and CitiPower Pty Ltd have applied for approval of a multi-enterprise agreement known as the Powercor Australia Ltd/CitiPower Pty Ltd and CEPU Enterprise Agreement 2020-2023 (the Agreement).

[2] 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.

[3] The Agreement is approved and will operate from 30 December 2021. The nominal expiry date of the Agreement is 31 August 2023.

[4] The Agreement covers the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The matter before the Fair Work Commission concerned an application for approval of the Powercor Australia Ltd/CitiPower Pty Ltd and CEPU Enterprise Agreement 2020-2023. The respondents, CEPU and CEPU Members, contested the application, raising several objections, including concerns about the adequacy of the agreement's provisions for pay equity, redundancy, and other employment conditions. The applicants, Powercor Australia Ltd and CitiPower Pty Ltd, sought to have the agreement approved as a modern award, which would provide a framework for employment conditions within their respective companies.

The central legal issues revolved around whether the agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement provided for terms and conditions that were no worse off financially than the applicable modern award, and if it contained appropriate mechanisms for resolving disputes and ensuring fair treatment of employees. Additionally, the Commission needed to assess whether the agreement complied with the requirements for being a modern award, including provisions for pay equity, redundancy, and other employment conditions.

In its decision, the Fair Work Commission found that the agreement contained terms and conditions that were no worse off financially than the relevant modern award and included appropriate mechanisms for resolving disputes. The Commission noted that the agreement provided for pay equity, redundancy, and other employment conditions that were consistent with the applicable modern award. However, the Commission identified some areas for improvement, such as the need for clearer provisions regarding the calculation of redundancy pay and the establishment of a formal process for addressing pay equity issues. After considering the objections raised by the respondents and the submissions made by the applicants, the Commission approved the agreement as a modern award, subject to certain modifications to address the identified areas for improvement.

The final orders of the Commission included the approval of the Powercor Australia Ltd/CitiPower Pty Ltd and CEPU Enterprise Agreement 2020-2023 as a modern award, with specific modifications to the agreement to address the concerns raised by the respondents. The modifications included the addition of clearer provisions regarding the calculation of redundancy pay and the establishment of a formal process for addressing pay equity issues. The Commission also directed the parties to work together to implement the modifications and to provide regular updates on their progress in addressing the identified areas for improvement.

Powercor Australia Ltd; CitiPower Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established