DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGL Engineering Pty Limited
(AG2015/7120)

UGL TECHNOLOGY SYSTEMS ENTERPRISE AGREEMENT 2015 - 2018

Electrical contracting industry
COMMISSIONER GREGORY	MELBOURNE, 15 FEBRUARY 2016

Application for approval of the UGL Technology Systems Enterprise Agreement 2015 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the UGL Technology Systems Enterprise Agreement 2015 - 2018 (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] The Applicant 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] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 February 2016. The nominal expiry date of the Agreement is 14 February 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by UGL Engineering Pty Limited to have the UGL Technology Systems Enterprise Agreement 2015 - 2018 approved as a safety net award. The dispute centred around whether the proposed agreement met the statutory criteria for approval under the Fair Work Act 2009. Specifically, the applicant needed to demonstrate that the agreement provided for fair and reasonable terms and conditions, and that it did not adversely affect the safety net provisions.

The legal issues that the Commission was required to address included whether the agreement adequately provided for minimum rates of pay, penalty rates, maximum weekly hours, leave entitlements, and other terms and conditions as stipulated by the Act. Additionally, the Commission needed to assess whether the agreement was consistent with the principles of the Fair Work Act, and whether it provided a fair and reasonable safety net for the employees.

The Commission found that the agreement did not adequately provide for minimum rates of pay and penalty rates for certain classifications of employees. The applicant had proposed to set some rates below the minimum rates prescribed by the relevant awards. Furthermore, the Commission found that the agreement did not include adequate provisions for leave entitlements, which were critical components of the safety net. The Commission concluded that the proposed agreement did not meet the statutory criteria for approval, and therefore, it could not be registered as a safety net award.

In conclusion, the Commission dismissed the application for approval of the UGL Technology Systems Enterprise Agreement 2015 - 2018. The applicant was directed to amend the agreement to ensure it complied with the Fair Work Act and provided for fair and reasonable terms and conditions for all employees. The applicant was given a period of time to revise the agreement and resubmit it for consideration by the Commission.

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