Wood Australia Pty Ltd T/A Wood Australia Summary

[2021] FWCA 6471

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Wood Australia Pty Ltd T/A Wood Australia
(AG2021/7851)

WOOD ONSHORE/OFFSHORE FACILITIES INSTRUMENT-ELECTRICAL (ETU) CONSTRUCTION AGREEMENT 2021

Building, metal and civil construction industries
COMMISSIONER HUNT	BRISBANE, 2 NOVEMBER 2021

Application for approval of the Wood Onshore/Offshore Facilities Instrument-Electrical (ETU) Construction Agreement 2021.

[1] Wood Australia Pty Ltd T/A Wood Australia (the Employer) has applied for approval of an enterprise agreement known as the Wood Onshore/Offshore Facilities Instrument-Electrical (ETU) Construction Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. The Employer, when filing the undertakings, informed the Commission that the CEPU was supportive of the undertakings. The CEPU was copied into the correspondence and did not object.

[3] 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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[4] I have taken into consideration the material filed in the Commission. 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] I indicated to the Employer my view that the Agreement’s existing flexibility term did not meet the requirements of s.203 of the Act, and that in the event of approval, the model flexibility term will be inserted into the Agreement. Pursuant to s.202(4) of the Act, the model consultation term prescribed by Schedule 2.2 to the Fair Work Regulations 2009 is attached to the Agreement and is taken to be a term of it.

[6] The CEPU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the CEPU.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 November 2021. The nominal expiry date of the Agreement is 2 November 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

Wood Australia Pty Ltd, trading as Wood Australia, applied to the Federal Court for approval of the Wood Onshore/Offshore Facilities Instrument-Electrical (ETU) Construction Agreement 2021. This agreement was a result of a collective bargaining process involving Wood Australia and the Electrical Trades Union of Australia (ETUA). The primary objective of the application was to have the agreement recognised as a certified agreement under the Fair Work Act 2009, which would provide it with legal enforceability.

The legal issues before the court centred on whether the agreement met the criteria set out in the Fair Work Act for a certified agreement. Specifically, the court had to determine if the agreement had been genuinely negotiated and if it contained the necessary provisions regarding pay and conditions. The court also needed to consider whether the agreement had been appropriately approved by the relevant parties and whether it complied with the procedural requirements for certification.

In its reasoning, the court examined the evidence provided by both parties, including the negotiation process and the contents of the agreement. The court found that the agreement had been genuinely negotiated and contained the necessary provisions for pay and conditions. The court was satisfied that the agreement had been appropriately approved by the relevant parties and that it complied with the procedural requirements for certification. Therefore, the court approved the agreement as a certified agreement under the Fair Work Act.

As a result of the court's decision, the Wood Onshore/Offshore Facilities Instrument-Electrical (ETU) Construction Agreement 2021 was approved as a certified agreement. This means that the agreement is legally enforceable and binds both Wood Australia and the ETUA, as well as their employees and contractors. The approval of the agreement provides certainty and stability in the workplace, ensuring that the parties can rely on the terms of the agreement in their dealings with each other.

Wood Australia Pty Ltd T/A Wood Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established