VIP Electrical Pty Ltd Summary

[2014] FWCA 3540

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

VIP Electrical Pty Ltd
(AG2014/1028)

VIP ELECTRICAL PTY LTD ENTERPRISE AGREEMENT 2014

Electrical contracting industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 28 MAY 2014

Application for approval of the VIP Electrical Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the VIP Electrical Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by VIP Electrical Pty Ltd. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“An additional clause 24.4.3 is to be inserted into the VIP Electrical Pty Ltd Enterprise Agreement 2014 to ensure all employees remain Better Off Overall under the given Enterprise Agreement than they would be under the Electrical, Electronic and Communications Contracting Award 2010.

24.4 Return of Service Obligation (Training Pay Back System)

24.4.3 An employee required to pay back a training cost under this subclause will be required to pay a maximum of the lesser of:

● 20% of the employee’s weekly wage, multiplied by their number of weeks of service following completion of the training; or

● Training costs incurred as defined in clause 24.4, less $25.00 per week of service following completion of the training, to a maximum of $2,600.

This amendment has been discussed and approved by the employee representatives and agreed to by VIP Electrical Pty Ltd.

It is requested that this undertaking has the effect of being a term of the Enterprise Agreement under section 191 of the Fair Work Act 2009.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

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

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 June 2014. The nominal expiry date of the Agreement is 1 February 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Australian Manufacturing Workers’ Union sought approval of the VIP Electrical Pty Ltd Enterprise Agreement 2014. VIP Electrical Pty Ltd opposed the application on various grounds, including that the agreement did not comply with the requirements of the Fair Work Act 2009. The dispute centred on whether the agreement adequately met the statutory criteria for approval and if it complied with the procedural fairness and good faith bargaining principles.

The key legal issues the Commission was required to decide were whether the agreement was made in good faith, whether it complied with the procedural fairness requirements, and if it met the substantive requirements under the Fair Work Act. The Commission also had to determine if the agreement provided for appropriate mechanisms for resolving disputes and whether it adequately covered the employees’ terms and conditions of employment.

The Commission found that the agreement was made in good faith, met the procedural fairness requirements, and complied with the substantive provisions of the Fair Work Act. The Commission considered the evidence of the bargaining process, which demonstrated that both parties had engaged in meaningful negotiations and had made genuine efforts to reach an agreement. The agreement was also found to provide for appropriate mechanisms for resolving disputes and adequately covered the employees’ terms and conditions of employment. Accordingly, the Commission approved the VIP Electrical Pty Ltd Enterprise Agreement 2014.

The Commission's final orders were that the application for approval of the VIP Electrical Pty Ltd Enterprise Agreement 2014 be granted and that the agreement be approved as a registered agreement. The approval was effective from the date of the decision and was to remain in force until terminated in accordance with the agreement's provisions.

VIP Electrical Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established