UGL Engineering Pty Ltd

[2024] FWCA 3524

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

UGL Engineering Pty Ltd

(AG2024/3102)

UGL ENGINEERING PTY LTD & AMWU CFMEU ETU HUNTER POWER PROJECT AGREEMENT 2024-2025

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 10 OCTOBER 2024

Application for approval of the UGL Engineering Pty Ltd & AMWU CFMEU ETU Hunter Power Project Agreement 2024-2025

UGL Engineering Pty Ltd has made an application for approval of an enterprise agreement known as the UGL Engineering Pty Ltd & AMWU CFMEU ETU Hunter Power Project Agreement 2024-2025 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that it will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

The Australian Manufacturing Workers’ Union (AMWU), the Construction, Forestry and Maritime Employees Union (CFMEU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they want the Agreement to cover them. As required by s 201(2), I note that the Agreement covers the AMWU, the CFMEU and the CEPU.

The Agreement was approved on 10 October 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the Australian Manufacturing Workers' Union (AMWU), the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), and the Electrical Trades Union (ETU) sought approval for an enterprise agreement with UGL Engineering Pty Ltd for the Hunter Power Project. The application was contested by the Australian Manufacturing Workers' Union, which argued that the agreement did not adequately address various employment conditions and entitlements. The Commission was required to determine whether the proposed agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issue was whether the enterprise agreement was "freely negotiated" and met the "better off overall test" for the employees covered by the agreement. The AMWU argued that the agreement did not sufficiently address several aspects of employee entitlements and conditions, potentially leaving workers worse off than under the existing awards. The Commission needed to assess the provisions of the agreement against these legal requirements to determine if it could be approved.

The Commission found that while there were some shortcomings in the agreement, the overall provisions met the necessary criteria for approval. The agreement contained terms that were reasonably necessary to protect employees' wages and conditions, and the Commission was satisfied that the majority of employees would be better off overall with the proposed agreement. The Commission approved the agreement, noting that while some improvements could be made, the benefits of the agreement outweighed the deficiencies. The Commission's decision was based on the evidence presented and the need to balance the interests of both employers and employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established