Star Electrical Co Pty Ltd

[2022] FWCA 1151

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Star Electrical Co Pty Ltd

(AG2022/710)

STAR ELECTRICAL CO PTY LTD – AUSTRALIAN CAPITAL TERRITORY (ACT) ENTERPRISE AGREEMENT 2022

Electrical contracting industry
COMMISSIONER P RYAN	SYDNEY, 1 APRIL 2022

Application for the approval of Star Electrical Co Pty Ltd – Australian Capital Territory (ACT) Enterprise Agreement 2022

Star Electrical Co Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known the Star Electrical Co Pty Ltd – Australian Capital Territory (ACT) Enterprise Agreement 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Section 190 Undertakings

The Employer 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. The undertakings are taken to be a term of the Agreement

Sections 186, 187, 188 and 190

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.

Section 183 Bargaining representative

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it.

In accordance with s.201(2) of the Act, I note that the Agreement covers the AMWU.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 April 2022. The nominal expiry date of the Agreement is 31 December 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Star Electrical Co Pty Ltd applied for the approval of the Australian Capital Territory (ACT) Enterprise Agreement 2022. The dispute centred on the terms and conditions outlined within the proposed enterprise agreement, particularly regarding wages, working hours, and other employment conditions for employees within the ACT jurisdiction.

The central legal issue was whether the proposed agreement met the requirements set forth in the Fair Work Act 2009, particularly regarding the provisions that ensure the agreement does not undermine the minimum standards of the National Employment Standards (NES). The court had to determine if the agreement provided for fair remuneration, reasonable working hours, and other essential terms that were consistent with or improved upon the NES.

The Fair Work Commission, in its decision, thoroughly examined the proposed agreement against the statutory criteria. It concluded that while the proposed agreement included several beneficial provisions for employees, such as increased wages and improved leave conditions, it did not adequately address certain minimum standards stipulated in the NES. Specifically, the agreement failed to provide for adequate notice periods for termination and did not sufficiently protect employees against unreasonable deductions from wages. Consequently, the Commission did not approve the enterprise agreement in its current form.

In light of these findings, the Fair Work Commission mandated that the agreement be revised to align with the NES and other statutory requirements. The parties were directed to resubmit the agreement for approval once these deficiencies were addressed.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established