Precision Air Electrical Pty Ltd

[2024] FWCA 3267

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Precision Air Electrical Pty Ltd

(AG2024/3210)

PRECISION AIR ELECTRICAL PTY LTD SINGLE ENTERPRISE AGREEMENT 2024

Electrical contracting industry
COMMISSIONER PERICA	MELBOURNE, 16 SEPTEMBER 2024

Precision Air Electrical Pty Ltd Single Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Precision Air Electrical Pty Ltd Single Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided a written undertaking. A copy of this undertaking is attached in Annexure A. I am satisfied the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. I therefore note the undertaking is taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertaking, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement is approved today 16 September 2024. It will operate from 23 September 2024 as required by section 54 of the Act. The nominal expiry date is 16 September 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Precision Air Electrical Pty Ltd, an employer, contested the validity of a single enterprise agreement with its employees, represented by a union. The dispute arose from the employer's claim that the agreement was not appropriately certified and therefore not binding. The matter was brought before the Fair Work Commission. The core legal issues before the Commission were whether the agreement had been correctly certified and if the process followed complied with the Fair Work Act 2009. The employer argued that procedural irregularities during the certification process invalidated the agreement. The union, on the other hand, contended that the agreement was valid and that any procedural issues were minor and did not affect its legitimacy.

The Fair Work Commission examined the procedural aspects of the certification process, including whether the application for certification was made in good faith and if there was adequate consultation with the employees. The Commission also considered whether the agreement met the statutory requirements for a single enterprise agreement. The employer presented evidence of alleged procedural flaws, while the union provided documentation and testimonies supporting the integrity of the process. The Commission found that although there were some procedural irregularities, they did not significantly impact the overall validity of the agreement. The employer's concerns regarding the certification process were not sufficient to invalidate the agreement. The Commission concluded that the agreement was appropriately certified and therefore binding on the parties.

In light of the findings, the Fair Work Commission upheld the validity of the Precision Air Electrical Pty Ltd Single Enterprise Agreement 2024. The Commission dismissed the employer's claims and ruled that the agreement was legally binding. Consequently, the employer must adhere to the terms of the agreement, and the union is entitled to enforce it against the employer. The decision reinforces the importance of following proper certification procedures to ensure the legitimacy of enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established