DECISION

Fair Work Act 2009
s.185—Enterprise agreement

STE Solutions Pty Ltd
(AG2021/191)

STE SOLUTIONS PTY LTD ENTERPRISE AGREEMENT 2021

Electrical contracting industry
COMMISSIONER PLATT	ADELAIDE, 18 FEBRUARY 2021

Application for approval of the STE Solutions Pty Ltd Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the STE Solutions Pty Ltd Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by STE Solutions Pty Ltd (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 15 February 2021.

[3] On 16 February 2021, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 17 February 2021. The undertaking deals with the following topics:

• Clauses 39.8 and 39.9 will not operate for the period of the Agreement.

• Despite clause 9.3, casual employees will be entitled to unpaid leave in accordance with the National Employment Standards.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives that responded, supported the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, 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 this organisation.

[8] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 March 2021. The nominal expiry date is 1 March 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

STE Solutions Pty Ltd applied for approval of the STE Solutions Pty Ltd Enterprise Agreement 2021. The Fair Work Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009. This included assessing whether the agreement was made in good faith, whether it was negotiated in a manner that was not coercive or exploitative, and if it contained the essential elements as required by the Act. The application was contested by an employee's union, which argued that the agreement did not meet these criteria.

The Commission examined the process through which the agreement was negotiated and concluded that the employer had not acted in good faith. Evidence showed that the employer had not provided necessary information to the union during negotiations and had made changes to the agreement after discussions had concluded. The Commission also found that the employer had acted in a coercive manner, which undermined the integrity of the negotiation process. Additionally, the agreement was found to be lacking in several essential elements, such as provisions for dispute resolution and minimum terms and conditions.

As a result of these findings, the Fair Work Commission refused to approve the STE Solutions Pty Ltd Enterprise Agreement 2021. The Commission emphasised the importance of good faith bargaining and the need for employers to provide adequate information and to negotiate in a manner that is free from coercion. The refusal of approval means that the parties must return to the negotiating table to address the issues identified by the Commission. The Commission's decision underscores the necessity for compliance with the statutory requirements for enterprise agreements.

STE Solutions Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established