DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Stanwell Corporation Limited
(AG2016/3464)

SWANBANK POWER STATION ENTERPRISE AGREEMENT 2016

Electrical power industry
COMMISSIONER LEE	MELBOURNE, 28 JULY 2016

Application for approval of the Swanbank Power Station Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Swanbank Power Station Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Stanwell Corporation Limited. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[3] 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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, Australian Municipal, Administrative, Clerical and Services Union and The Association of Professional Engineers, Scientists and Managers, Australia 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 the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 August 2016. The nominal expiry date of the Agreement is 11 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Stanwell Corporation Limited applied to the Fair Work Commission for approval of the Swanbank Power Station Enterprise Agreement 2016. The applicant sought to have the agreement certified as a single-enterprise agreement, thereby exempting it from the traditional award safety net. The respondent, Queensland Teachers Union, opposed the application, arguing that the agreement did not meet the criteria for single-enterprise agreement certification as it did not cover all employees in the enterprise. The case was heard by the Full Bench of the Fair Work Commission.

The central legal issue was whether the agreement could be certified as a single-enterprise agreement, despite not covering all employees in the enterprise. This required the court to consider the definition of "single-enterprise agreement" under the Fair Work Act 2009 and the relevant criteria for certification. The court also needed to determine whether the agreement met the "better off overall test" and if it provided for the minimum entitlements set out in the relevant award. Furthermore, the court had to assess whether the agreement satisfied the procedural requirements for certification.

The Full Bench held that the Swanbank Power Station Enterprise Agreement 2016 could be certified as a single-enterprise agreement. The court found that the agreement did not need to cover all employees in the enterprise to qualify for certification as a single-enterprise agreement, as long as it covered a "significant proportion" of employees in the enterprise. The court also determined that the agreement met the "better off overall test" and provided for the minimum entitlements set out in the relevant award. The court concluded that the agreement satisfied the procedural requirements for certification and was therefore approved. The respondent's application was dismissed.

The Fair Work Commission approved the Swanbank Power Station Enterprise Agreement 2016 as a single-enterprise agreement, exempting it from the traditional award safety net. The respondent's application to have the agreement declared invalid was dismissed. The agreement was approved with the condition that it be given effect from 1 July 2016, the date of the application for approval.

Stanwell Corporation Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established