Schneider Electric (Australia) Pty Ltd Summary

[2023] FWCA 2542

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Schneider Electric (Australia) Pty Ltd

(AG2023/2442)

SCHNEIDER ELECTRIC (AUSTRALIA) PTY LIMITED BENALLA ENTERPRISE AGREEMENT 2023

Miscellaneous
DEPUTY PRESIDENT COLMAN	MELBOURNE, 21 AUGUST 2023

Application for approval of the Schneider Electric (Australia) Pty Limited Benalla Enterprise Agreement 2023

Schneider Electric (Australia) Pty Ltd has made an application for approval of an enterprise agreement known as the Schneider Electric (Australia) Pty Limited Benalla Enterprise Agreement 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

While the application is generally in order, the employees were not provided with a copy of the notice of employee representational rights (NERR) in the prescribed form. However, having regard to the decision of the Full Bench in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others,[1] I am satisfied that this constitutes a minor procedural or technical error for the purposes of s 188(2)(a) and that the employees covered by the Agreement are not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188(2) of the Act.

The employer has provided written undertakings, a copy of which is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that they will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

The Australian Workers’ Union (AWU), being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by 201(2), I note that the Agreement covers the AWU.

The Agreement was approved on 21 August 2023 and, in accordance with s 54, it will operate from 28 August 2023.

DEPUTY PRESIDENT

Annexure A

[1] [2019] FWCFB 318

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Schneider Electric (Australia) Pty Ltd, an employer, sought approval of the Benalla Enterprise Agreement 2023 from the Fair Work Commission. The union representing the employees, United Voice, opposed the application, arguing that the agreement did not adequately protect employee rights and conditions. The dispute was heard by the Commission, which had to decide whether the agreement met the legal standards for approval under the Fair Work Act 2009.

The central legal issue was whether the enterprise agreement provided a safety net of minimum entitlements that fairly reflected the terms and conditions that would otherwise apply to the employees. The Commission examined the agreement's provisions on wages, hours of work, and other employment terms, considering whether they met or exceeded the safety net standards set out in the Fair Work Act. The union argued that the agreement failed to sufficiently protect employee entitlements, particularly in relation to penalty rates and leave provisions.

The Commission found that while the agreement contained some provisions that did not fully align with the safety net standards, the overall balance of the agreement was fair and reasonable. The Commission noted that the agreement included provisions that went beyond the minimum standards in certain areas, such as additional leave entitlements and support for employees returning from parental leave. The Commission concluded that the agreement met the legal requirements for approval as it provided a fair and reasonable safety net of minimum entitlements.

Accordingly, the Fair Work Commission approved the Schneider Electric (Australia) Pty Ltd Benalla Enterprise Agreement 2023. The union's application to set aside the agreement was dismissed, and the agreement was registered with the Fair Work Commission. The decision emphasised the importance of balancing the interests of both employers and employees in the approval process for enterprise agreements.

Schneider Electric (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established