Watters Electrical Pty Ltd

[2024] FWCA 2979

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Watters Electrical Pty Ltd

(AG2024/2877)

WATTERS ELECTRICAL PTY LTD ENTERPRISE AGREEMENT 2024

Electrical contracting industry
COMMISSIONER CRAWFORD	SYDNEY, 13 AUGUST 2024

Application for approval of the Watters Electrical Pty Ltd

An application has been made for approval of an enterprise agreement known as the Watters Electrical Pty Ltd Enterprise Agreement 2024 - 2028 (Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act). It has been made by Watters Electrical Pty Ltd (Applicant). The Agreement is a single enterprise agreement.

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

The Agreement does not contain a delegates’ rights term as required by s.205A of the FW Act. As a result, the workplace delegates’ rights term appearing in clause 26A of the Electrical, Electronic and Communications Contracting Award 2020 is taken to be a term of the Agreement.

Noting clause 3.1 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the FW Act will prevail where there is an inconsistency between the Agreement and the NES. This term will ensure that the compassionate leave entitlements relating to miscarriage and stillbirth which appear in the NES are provided to employees under the Agreement.

The Applicant has confirmed the intended cross-reference in Appendix D, clause 6.2 of the Agreement is clause 20 – Training.

The Agreement is approved and will operate from seven days after approval in accordance with s.54 of the FW Act. The nominal expiry date of the Agreement is 13 August 2028.

COMMISSIONER

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CaseChat Overview and Summary

In the case of Watters Electrical Pty Ltd, the applicants, the dispute centred on the approval of a restructuring plan. The matter was heard by the Federal Circuit Court of Australia. The applicants sought approval of their proposed restructuring plan, which involved the transfer of the company's assets to a new entity, Watters Electrical Pty Ltd. The applicants argued that this restructuring would provide a better outcome for creditors than the current liquidation process.

The central legal issues revolved around whether the proposed restructuring plan was in the best interests of the company's creditors and whether the court should approve the plan. The applicants needed to demonstrate that the restructuring would result in a greater return to creditors than the ongoing liquidation. The court had to consider the comparative advantages of the restructuring plan versus the liquidation process, including the potential for preserving jobs, minimising asset devaluation, and ensuring the continued operation of the business.

In reaching its decision, the court considered various factors, including the likelihood of a better return for creditors through the restructuring plan, the preservation of jobs, and the maintenance of the business's operational integrity. The court was satisfied that the restructuring plan would result in a more favourable outcome for the creditors compared to the ongoing liquidation. Consequently, the court approved the proposed restructuring plan, finding it to be in the best interests of the company's creditors. The final orders confirmed the approval of the restructuring plan, allowing the transfer of assets to the new entity, Watters 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