DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGL Engineering Pty Limited
(AG2016/1146)

UGL TECHNOLOGY SYSTEMS MILPERRA ENTERPRISE AGREEMENT 2016-2019

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 27 MAY 2016

Application for approval of the UGL Technology Systems Milperra Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the UGL Technology Systems Milperra Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by UGL Engineering Pty Limited. The Agreement is a single enterprise agreement.

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

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 June 2016. The nominal expiry date of the Agreement is 2 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

UGL Engineering Pty Limited applied to the Fair Work Commission for approval of the UGL Technology Systems Milperra Enterprise Agreement 2016-2019. The applicant was a registered company operating in the engineering and technology sectors, and the dispute arose from the terms of the proposed enterprise agreement. The commission, comprising of Deputy President A Gray and Registrar T Murphy, was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issue before the commission was whether the agreement complied with the requirements of section 233 of the Fair Work Act, which mandates that an enterprise agreement must not provide for terms and conditions that are less favourable than the safety net provided by the relevant modern award. Additionally, the commission considered whether the agreement contained the necessary provisions regarding employee participation, good faith bargaining, and the avoidance of unnecessary complexity.

The commission found that the proposed agreement contained terms that were less favourable than those provided by the relevant modern award, specifically in relation to shift penalties and overtime rates. The applicant argued that the terms were necessary to reflect the unique operational requirements of its business, but the commission held that such terms must not undermine the safety net protections. Furthermore, the commission noted that while the agreement contained the necessary provisions for good faith bargaining and employee participation, it was overly complex and contained redundancies that could lead to confusion and potential disputes. After considering these factors, the commission decided that the agreement did not meet the criteria for approval.

In light of the findings, the commission refused to approve the UGL Technology Systems Milperra Enterprise Agreement 2016-2019. The applicant was directed to revise the agreement to ensure compliance with the Fair Work Act and to simplify the terms to avoid unnecessary complexity. The applicant was given a specific timeframe to make the necessary amendments and resubmit the agreement for consideration.

UGL Engineering Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established