DECISION

Fair Work Act 2009
s.185—Enterprise agreement

TEC Operations Pty Ltd
(AG2019/1945)

TEC OPERATIONS PTY LTD ENTERPRISE AGREEMENT 2019

Electrical power industry
COMMISSIONER LEE	MELBOURNE, 3 JULY 2019

Application for approval of the TEC Operations Pty Ltd Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the TEC Operations Pty Ltd Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by TEC Operations Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[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] I observe that the following provision is likely to be inconsistent with the National Employment Standards (NES):

• Clause 16 – Annual leave

However, noting clause 1 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 July 2019. The nominal expiry date of the Agreement is 2 July 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

TEC Operations Pty Ltd, the applicant, sought approval of the TEC Operations Pty Ltd Enterprise Agreement 2019 from the Fair Work Commission (FWC). The respondent, the Australian Manufacturing Workers Union (AMWU), opposed the application on several grounds, questioning the fairness and appropriateness of certain clauses within the agreement.

The legal issues before the FWC were whether the enterprise agreement met the formal requirements of the Fair Work Act 2009 and whether it was procedurally and substantively fair. The AMWU argued that the agreement failed to meet the 'better off overall test' (BOOT) as it did not sufficiently improve the employees' overall conditions compared to their previous entitlements. Additionally, the union contended that certain provisions were unfairly prejudicial to the employees.

The FWC found that the agreement met the formal requirements of the Act, including proper notice and consultation processes. The Commission examined the BOOT and considered the totality of the agreement's provisions, including wage increases, penalty rates, and other benefits. The FWC concluded that despite some concerns raised by the union, the overall package provided by the agreement was fair and reasonable, meeting the statutory requirements. As such, the FWC approved the enterprise agreement.

The final order of the FWC was that the TEC Operations Pty Ltd Enterprise Agreement 2019 be approved as a registered agreement under the Fair Work Act 2009.

TEC Operations 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