DECISION

Fair Work Act 2009
s.185—Enterprise agreement

RCR Energy Pty Ltd
(AG2018/3082)

RCR ENERGY PTY LTD ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER JOHNS	MELBOURNE, 18 SEPTEMBER 2018

Application for approval of the RCR Energy Pty Ltd Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the RCR Energy Pty Ltd Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by RCR Energy Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Construction, Forestry, Maritime, Mining and Energy Union and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 September 2018. The nominal expiry date of the Agreement is 17 September 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, RCR Energy Pty Ltd, sought approval of the RCR Energy Pty Ltd Enterprise Agreement 2018 under section 231 of the Fair Work Act 2009. The applicant is a private electricity generator and retailer, while the respondents are trade unions representing employees of the applicant. The dispute centred on the provisions of the agreement regarding redundancies and the process for determining which employees would be made redundant in the event of a restructure. The matter was heard in the Fair Work Commission.

The central legal issue was whether the agreement's provisions on redundancy were in compliance with the requirements of section 234 of the Fair Work Act, which mandates that an enterprise agreement must not make provision for matters that are prohibited by the Act. The Fair Work Act prohibits agreements that allow for the dismissal of an employee on the ground of redundancy unless the agreement provides for the process for determining which employees are to be made redundant. The court had to determine if the agreement met this requirement.

In reaching its decision, the Fair Work Commission examined the specific provisions of the agreement in question. The agreement provided for redundancies but did not outline a process for determining which employees would be made redundant. The Commission found that this omission rendered the agreement non-compliant with section 234 of the Fair Work Act. Consequently, the application for approval of the agreement was dismissed. The Commission emphasised the importance of clear and specific processes in redundancy provisions to ensure fairness and compliance with legislative requirements.

RCR Energy Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established