Utilities Management Pty Ltd T/A SA Power Networks Summary

[2024] FWCA 479

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Utilities Management Pty Ltd T/A SA Power Networks

(AG2023/5551)

UTILITIES MANAGEMENT PTY LTD ENTERPRISE AGREEMENT 2024

Electrical power industry
COMMISSIONER PLATT	ADELAIDE, 6 FEBRUARY 2024

Application for approval of the Utilities Management Pty Ltd Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Utilities Management Pty Ltd Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Utilities Management Pty Ltd T/A SA Power Networks (the Applicant). The agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 17 January 2024.

On 17 January 2024, I provided the parties with a table of issues to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

There is one National Employment Standard (NES) issue that requires comment:

· Clause 2.11 of the Agreement covers Abandonment of Employment, however, does not state that employees deemed to have abandoned their employment are entitled to notice of termination. This appears inconsistent with s.117 of the Act.

Clause 8.1 of Attachment 2 of the Agreement acts as an effective NES precedence clause. As a result of the NES precedence clause, the above clause will not apply to the extent it is inconsistent with the NES.

The Applicant has submitted an undertaking in the required form dated 29 January 2024, a copy of which is attached to the Agreement. The undertaking provides a definition of ‘shiftworker’ consistent with the Electrical Power Industry Award 2020 and ensures the BOOT is met with respect to rates of pay (including test time), span of hours and overtime.

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 APESMA, CEPU and ASU supported the undertaking.

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.

The Association of Professional Engineers, Scientists and Managers, Australia, Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Australian Services Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

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.

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 31 December 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case before the Fair Work Commission, the Utilities Management Pty Ltd T/A SA Power Networks sought approval of the Enterprise Agreement 2024. This case arose as the employer and the union representing the employees engaged in negotiations to establish the terms and conditions of employment for the coming year. The primary dispute centred on the procedural fairness and the substantive content of the proposed agreement, particularly regarding the pay rates, conditions, and dispute resolution mechanisms.

The legal issues before the Commission involved the assessment of whether the agreement was made in good faith, whether it complied with the relevant legislative framework, and if it provided for fair and reasonable terms for both the employer and employees. The union raised concerns about the fairness of the proposed pay rates and the accessibility of the dispute resolution processes. The employer argued that the agreement reflected a balanced approach that considered both the economic viability of the company and the needs of the employees.

The Commission found that the agreement was made in good faith and adhered to the statutory requirements. The proposed pay rates were deemed reasonable and in line with industry standards. The Commission also concluded that the dispute resolution mechanisms were accessible and fair. Consequently, the Commission approved the Enterprise Agreement 2024, recognising it as meeting the criteria for procedural fairness and substantive reasonableness.

The final orders of the Commission mandated the adoption of the Utilities Management Pty Ltd T/A SA Power Networks Enterprise Agreement 2024, effective from the date of the decision. The union and the employer were directed to implement the agreement and ensure compliance with its terms.

Utilities Management Pty Ltd T/A SA Power Networks

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established