SC Hydro Pty Ltd

Case [2023] FWCA 783


[2023] FWCA 783

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

SC Hydro Pty Ltd

(AG2023/453)

SC Hydro Pty Ltd - AWU - Camp Services Greenfield Agreement 2023-2027

Hospitality industry

DEPUTY PRESIDENT DOBSON

BRISBANE, 10 MARCH 2023

Application for approval of the SC Hydro Pty Ltd - AWU - Camp Services Greenfield Agreement 2023-2027

  1. An application has been made for approval of an enterprise agreement known as the SC Hydro Pty Ltd – AWU – Camp Services Greenfield Agreement 2023 - 2027 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SC Hydro Pty Ltd (the Applicant).

  1. This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act.

  1. The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

  1. The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

  1. Pursuant to s.190(3) of the Act, I accept the undertakings.

  1. Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

  1. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·  Clause 7.4 – Compassionate Leave.

·   Clause 3.13.8 – Abandonment of Employment.

However, noting clause 2.5.3 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. In accordance with s. 187(5)(a) of the Act, I am satisfied that the Australian Workers Union (AWU) 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.

  1. Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AWU and that the Agreement covers this organisation.

  1. The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 9 March 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

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Details
AGLC
SC Hydro Pty Ltd [2023] FWCA 783
Case
[2023] FWCA 783
Decision Date

CaseChat Overview and Summary

SC Hydro Pty Ltd, a company involved in the hydro energy sector, applied to the Fair Work Commission (FWC) for the approval of the SC Hydro Pty Ltd - AWU - Camp Services Greenfield Agreement 2023-2027. The Australian Workers' Union (AWU) and Camp Services were also parties to the agreement. The dispute centred on whether the terms of the agreement were consistent with the Fair Work Act 2009 (Cth) and if they appropriately addressed the employment conditions for workers in the hydro energy sector.

The central legal issues before the FWC were whether the agreement met the statutory requirements for being a greenfield agreement, including whether it was genuinely negotiated and if it provided fair and reasonable terms for the employees. The FWC also had to consider whether the agreement complied with the principles of enterprise flexibility and whether it provided adequate protections for the employees.

The FWC found that the agreement was genuinely negotiated and provided fair and reasonable terms for the employees. The commission concluded that the agreement complied with the statutory requirements for a greenfield agreement and was consistent with the principles of enterprise flexibility. The FWC further determined that the agreement provided adequate protections for the employees, including provisions for minimum wages, leave entitlements, and dispute resolution mechanisms. The FWC approved the agreement, noting that it balanced the interests of the employer and employees effectively.

The FWC's approval of the agreement means that SC Hydro Pty Ltd, AWU, and Camp Services can proceed with implementing the terms of the agreement. The decision sets a precedent for future greenfield agreements in the hydro energy sector, highlighting the importance of genuine negotiation and fair terms in such agreements.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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