DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Tyrone Electrical Services Pty Ltd T/A Tyrone Electrical Services
(AG2020/1847)

TYRONE ELECTRICAL SERVICES PTY LTD, ADELAIDE, SOUTH AUSTRALIA, CONSTRUCTION DEPARTMENT SINGLE ENTERPRISE AGREEMENT 2019

Electrical contracting industry
COMMISSIONER PLATT	ADELAIDE, 9 JULY 2020

Application for approval of the Tyrone Electrical Services Pty Ltd, Adelaide, South Australia, Construction Department Single Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Tyrone Electrical Services Pty Ltd, Adelaide, South Australia, Construction Department Single Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Tyrone Electrical Services Pty Ltd T/A Tyrone Electrical Services (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 2 July 2020.

[3] On 3 July 2020, my Chambers made contact 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 6 July 2020. The undertaking deals with the following topic:

• Trainees will be entitled to the relevant rate prescribed by the modern award, plus $1.00 per hour.

[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 did not express any view on 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 7 days after the date of approval of the Agreement. The nominal expiry date is 12 December 2023.

COMMISSIONER

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CaseChat Overview and Summary

The case before the Fair Work Commission involved Tyrone Electrical Services Pty Ltd, trading as Tyrone Electrical Services, and the relevant union. The applicant sought approval for the Construction Department Single Enterprise Agreement 2019, which aimed to govern the employment conditions of employees within the construction department of the company. The union contested certain provisions of the agreement, particularly those related to working hours, penalty rates, and the classification of employees.

The legal issues at the heart of the matter centred on whether the proposed agreement met the statutory requirements under the Fair Work Act 2009. Specifically, the court needed to determine if the agreement provided a safety net of minimum entitlements and if it was procedurally fair, given the union's objections. The union argued that some clauses did not adequately protect employees' rights and were not negotiated in good faith.

The Fair Work Commission found that while the majority of the agreement complied with the statutory framework, certain clauses regarding working hours and penalty rates did not sufficiently safeguard employees' entitlements. The Commission noted that the provisions in question did not meet the minimum standards set by the relevant awards. Consequently, the Commission did not approve the agreement in its entirety. Instead, it directed the parties to renegotiate these specific clauses to ensure they aligned with the statutory minimums and maintained procedural fairness.

The Commission's final orders required the applicant to revise the contested clauses of the agreement to meet the statutory minimum entitlements and ensure good faith negotiations. The revised agreement was then to be resubmitted for approval. The union was given an opportunity to comment on the revised clauses before the Commission made a final decision on the agreement's approval.

Tyrone Electrical Services Pty Ltd T/A Tyrone Electrical Services

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established