SJ Electric Group (Qld) Pty Ltd Summary

[2022] FWCA 4113

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

SJ Electric Group (Qld) Pty Ltd

(AG2022/4743)

S.J. Electric Group (QLD) Pty Ltd Enterprise Agreement 2022 – 2026

Electrical contracting industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 25 NOVEMBER 2022

Application for approval of the S.J. Electric Group (QLD) Pty Ltd Enterprise Agreement 2022 – 2026

An application has been made for approval of an enterprise agreement known as the S.J. Electric Group (QLD) Pty Ltd Enterprise Agreement 2022 – 2026 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SJ Electric Group (Qld) Pty Ltd. The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings 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 the undertakings will not result in substantial changes to the Agreement. Pursuant to s.201(3), the undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

I observe that clause 47 of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 3(g) 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.

The application lodged contained errors in the Applicant’s name. I have determined to exercise my powers under s.586 of the Act to amend the application such that the Applicant is correctly identified as SJ Electric Group (Qld) Pty Ltd.
The Agreement was approved on 25 November 2022 and, in accordance with s.54, will operate from 2 December 2022. The nominal expiry date of the Agreement is 25 November 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application for the approval of an enterprise agreement proposed by S.J. Electric Group (QLD) Pty Ltd. The company sought to establish a new enterprise agreement spanning the years 2022 to 2026, which would govern the employment conditions of its employees. The dispute primarily revolved around the terms and conditions proposed in the agreement, with a focus on whether they complied with relevant industrial and employment laws and whether they were fair and reasonable for the employees.

The central legal issues the court had to address included the compliance of the proposed agreement with the Fair Work Act 2009, particularly whether it met the "better off overall test" (BOOT). This test requires that employees be no worse off financially under the new agreement than they would be under their existing conditions, and that they should be better off overall. The court also needed to consider if the agreement was procedurally sound, ensuring that it was genuinely negotiated and that proper consultation had occurred between the employer and the employees.

Upon review, the Fair Work Commission found that the proposed agreement satisfied the better off overall test and adhered to the procedural requirements. The Commission was satisfied that the agreement was the product of genuine negotiation and that it provided for fair and reasonable terms and conditions. Consequently, the Commission approved the S.J. Electric Group (QLD) Pty Ltd Enterprise Agreement 2022-2026, deeming it compliant with the relevant legislative framework and fair to the employees involved. The decision underscored the importance of adhering to both substantive and procedural aspects of the agreement in ensuring its validity and fairness.

SJ Electric Group (Qld) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established