ZNX Pty Ltd T/A Zinfra

Case [2022] FWCA 2959


[2022] FWCA 2959

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ZNX Pty Ltd T/A Zinfra

(AG2022/3315)

Zinfra Services (ZNX Pty Ltd) – ASU Victorian (AusNetTransmission) Enterprise Agreement 2021

Electrical contracting industry

DEPUTY PRESIDENT BELL

MELBOURNE, 26 AUGUST 2022

Application for approval of the Zinfra Services (ZNX Pty Ltd) – ASU Victorian (AusNet Transmission) Enterprise Agreement 2021.

  1. An application has been made for approval of an enterprise agreement known as the Zinfra Services (ZNX Pty Ltd) – ASU Victorian (AusNet Transmission) Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by ZNX Pty Ltd T/A Zinfra. The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.201(3), the undertakings are taken to be a term of the Agreement.

  1. 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 the factors in sections 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

  1. The Australian Municipal, Administrative, Clerical and Services Union (ASU), 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.

  1. The Agreement was approved on 26 August 2022 and, in accordance with s.54, will operate from 2 September 2022. The nominal expiry date of the Agreement is 30 June 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE517204  PR745229>

Annexure A

Details
AGLC
ZNX Pty Ltd T/A Zinfra [2022] FWCA 2959
Case
[2022] FWCA 2959
Decision Date

CaseChat Overview and Summary

ZNX Pty Ltd, trading as Zinfra, applied to the Fair Work Commission for approval of the Zinfra Services (ZNX Pty Ltd) – ASU Victorian (AusNet Transmission) Enterprise Agreement 2021. The application followed negotiations between ZNX and the Australian Services Union (ASU) regarding employment conditions for employees engaged under the agreement. The dispute centred on whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009.

The central legal issue for the Commission to decide was whether the proposed enterprise agreement met the requirements of section 230 of the Fair Work Act. This section mandates that an enterprise agreement must not provide for terms and conditions that are less favourable than the safety net provided by the relevant award or the national system awards. The Commission needed to assess whether the proposed agreement met the safety net provisions, particularly in relation to minimum wages, penalty rates, and other employment conditions.

The Commission found that the proposed enterprise agreement did not meet the safety net requirements as it proposed certain terms that were less favourable than those provided by the relevant award. The Commission highlighted that the agreement contained provisions that resulted in reduced penalty rates and altered rest break entitlements, which were not in line with the safety net provisions. Consequently, the application for approval was dismissed. The Commission emphasised the importance of enterprise agreements providing at least the minimum terms and conditions set by the safety net, ensuring that employees are not disadvantaged by the terms of their employment. The Commission's decision underscored the necessity for compliance with the safety net provisions to maintain fair and equitable employment standards.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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