ETU proposed multi-enterprise agreement dismissed as not in public interest

The National Electrical and Communications Association NSW & ACT today welcomed the decision by the Fair Work Commission (FWC) to dismiss a Single Interest Employer Authorisation (SIEA) application made by the Electrical Trades Union as it was determined that it was not in the public interest.

If approved, the Authorisation would have allowed bargaining to commence for a multi-enterprise agreement with a broad scope covering employers with 20 or more employees undertaking projects of any size across NSW & the ACT.

NECA NSW & ACT and NECA Legal, have worked tirelessly to oppose the SIEA application and proposed agreement as it was bad for the industry, bad for NECA members, bad for their employees and bad for the general public.

At an FWC hearing in July, NECA, guided by its legal team, and represented by Peter Willink, Barrister, outlined serious concerns about the proposed agreement given its broad scope (both work and geographical) and argued that the proposed multi-enterprise agreement was not in the public interest. NECA also argued that the ETU was attempting to use the agreement to exploit a new rule called the rope-in mechanism, which allows other companies to be added to the agreement, putting every business in NSW & the ACT with 20 employees or more at risk.

The FWC accepted NECA’s argument relating to public interest and the Commissioner concluded that the requirements for an SIEA have not been met.

Mark Stedfut, Executive Director of NECA NSW & ACT, said:

“Common sense has prevailed and NECA welcomes the Commissioner’s decision. Clearly, an agreement that could potentially cover every electrical contracting business of almost any size in NSW and the ACT is not in the public interest and is wholly inappropriate for an industry where workers already enjoy excellent wages and conditions.

“The ETU’s failed efforts have wasted time, money, and resources and exposed a gaping hole in the legislation that needs to be addressed. The multi-employer bargaining laws must not be used to create a de facto industry award or hand one union control over the future of the electrical contracting industry, or any industry.

“In its aggressive but unsuccessful attempt to force this through, the ETU has set a precedent that should act to limit the scope of multi-enterprise agreements in the future.

“We continue to advocate for single enterprise agreements so individual businesses can bargain in good faith with their own employees to agree pay and conditions, rather than having them dictated by the ETU.

“We know that our members, especially the small and medium family businesses, will be relieved that this potential threat to their livelihoods is no longer under consideration.”

Lisa Carey, Senior Associate at NECA Legal Services, said:

“We are proud to have represented NECA’s members once again, and secured an outcome that protects employers, employees, and the wider industry.”

“The legislation for multi-enterprise agreement is relatively new, making this an important decision for the electrical industry and its contractors Australia wide. This decision confirms that broad multi-enterprise agreements must meet the public-interest test and cannot be used to capture an entire industry.”

The full decision can be seen here https://www.neca.asn.au/getmedia/9dca1f25-6e11-4c32-b51a-1cf9db71d758/Decision-25092026.pdf