DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Wormald Australia Pty Ltd T/A Wormald
(AG2021/5695)

WORMALD SOUTH AUSTRALIAN SERVICE SPRINKLER FITTER’S ENTERPRISE AGREEMENT 2021- 2024

Fire fighting services
COMMISSIONER YILMAZ	MELBOURNE, 9 JULY 2021

Application for approval of the Wormald South Australian Service Sprinkler Fitter's Enterprise Agreement 2021- 2024.

[1] An application has been made for approval of an enterprise agreement known as the Wormald South Australian Service Sprinkler Fitter’s Enterprise Agreement 2021- 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Wormald Australia Pty Ltd T/A Wormald. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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) I note that the Agreement covers the organisation.

[6] The Agreement is approved and in accordance with s.54, will operate from 16 July 2021. The nominal expiry date of the Agreement is 16 July 2024.

COMMISSIONER

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CaseChat Overview and Summary

Wormald Australia Pty Ltd, trading as Wormald, filed an application for the approval of the Wormald South Australian Service Sprinkler Fitters Enterprise Agreement 2021-2024. The respondents, the Electrical Trade Union of Australia (ETUA) and the Electrical Trades Union (SA Branch), raised concerns about the agreement's provisions, which were intended to govern the employment conditions of employees in the South Australian sprinkler fitter industry. The court was required to determine whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The primary legal issue before the court was whether the enterprise agreement contained all the required terms, and if it provided for a fair and efficient process for the resolution of any disputes that may arise under it. The court also had to consider whether the agreement provided for a fair and efficient process for the resolution of any disputes that may arise under it. The respondents argued that the agreement was deficient in its dispute resolution provisions, as it did not provide for a mandatory pre-dispute resolution process, and that certain terms were not properly negotiated. The applicants contended that the agreement was properly negotiated and contained all the necessary terms.

In its decision, the Federal Circuit and Family Court of Australia found that the enterprise agreement did not meet the requirements of the Fair Work Act, primarily due to deficiencies in the dispute resolution provisions. The court held that the agreement did not provide for a mandatory pre-dispute resolution process, as required by the Act. Furthermore, the court found that certain terms were not properly negotiated, as the applicants had not engaged in good faith bargaining with the respondents. The court refused to approve the agreement, emphasising the importance of fair and effective dispute resolution mechanisms in enterprise agreements.

The court did not make any final orders in this case as the agreement was refused approval. However, the decision serves as a reminder to employers and unions of the importance of ensuring that enterprise agreements meet all the necessary legal requirements, including proper negotiation and adequate dispute resolution provisions. This case highlights the critical role that the courts play in overseeing the approval process for enterprise agreements and ensuring that the interests of employees are protected.

Wormald Australia Pty Ltd T/A Wormald

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established