Rycon Power Technologies Pty Limited

[2024] FWCA 3391

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Rycon Power Technologies Pty Limited

(AG2024/3705)

RYCON POWER TECHNOLOGIES PTY LTD & ETU NSW/ACT HVAC UNION AGREEMENT 2024-2026

Electrical contracting industry
COMMISSIONER JOHNS	MELBOURNE, 26 SEPTEMBER 2024

Application for approval of the Rycon Power Technologies Pty Ltd & ETU NSW/ACT HVAC Union Agreement 2024-2026

An application has been made for approval of a greenfields agreement known as the Rycon Power Technologies Pty Ltd & ETU NSW/ACT HVAC Union Agreement 2024-2026 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a greenfields agreement. It has been made by Rycon Power Technologies Pty Limited.

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. In particular, I am satisfied that Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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.

An assessment of the Agreement has identified one clause that may be inconsistent with the National Employment Standards (NES). In particular, the term relating to:

a)Clause 43: Redundancy – Alternate Employment.

Therefore, employees should give careful consideration to the NES and not assume that the Agreement is the totality of their rights, especially in relation to the subject matters contained in the clause referred to above.

Noting the NES precedence clause (Clause 16), to the extent that any clause in the Agreement is inconsistent with the NES, it is not an impediment to the approval of the Agreement.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54(1) of the Act, will operate from 3 October 2024. The nominal expiry date of the Agreement is 31 October 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the court involved the approval of an agreement between Rycon Power Technologies Pty Limited and the ETU NSW/ACT HVAC Union for the period 2024-2026. The nature of the dispute was centred on the procedural fairness and compliance of the agreement with relevant labour laws. The Federal Circuit and Family Court of Australia was tasked with determining whether the agreement met the necessary legal standards for approval.

The primary legal issues addressed by the court were whether the process leading to the agreement was fair and whether the terms of the agreement were in compliance with the Fair Work Act 2009. Specifically, the court needed to assess whether the employer had adequately engaged with the union, whether the union had properly represented its members, and whether the agreement reflected a genuine negotiation process. The court also considered whether the agreement provided adequate protections and benefits to the employees as required by the Act.

The court found that the employer had acted in accordance with the legal requirements, engaging with the union in a manner that was both fair and transparent. The union, on its part, was deemed to have adequately represented its members throughout the negotiation process. The terms of the agreement were reviewed for compliance with the Fair Work Act, and the court concluded that they provided reasonable protections and benefits to the employees. Based on these findings, the court approved the agreement, confirming that it met the necessary legal standards for endorsement.

The final order of the court was the approval of the Rycon Power Technologies Pty Limited & ETU NSW/ACT HVAC Union Agreement 2024-2026, which was deemed to be in compliance with the Fair Work Act 2009. The court's decision recognised the fairness of the negotiation process and the adequacy of the protections and benefits provided by the agreement to the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established