Application by EnergyAustralia Yallourn Pty Ltd Trading AS EnergyAustralia
Citation: [2026] FWC 3263
At a glance
- Employees affected
- 33
What happened
EnergyAustralia Yallourn Pty Ltd (EnergyAustralia) applied to the Fair Work Commission for an order regarding the Waco Kwikform Ltd and CFMEU Yallourn Power Station & Open Cut Mine Enterprise Agreement 2025 (Waco Agreement) and the EnergyAustralia Yallourn Enterprise Agreement 2026 (EnergyAustralia Agreement). EnergyAustralia outsourced scaffolding services to Waco Kwikform Ltd, whose employees were covered by the Waco Agreement. EnergyAustralia is now insourcing the scaffolding work, transferring 33 employees from Waco to EnergyAustralia. The transferring employees currently work in electrical power roles in Yallourn. The CFMEU, representing the transferring employees, supports the application.
What was decided
The Fair Work Commission granted EnergyAustralia’s application under s.318 of the Fair Work Act 2009. The Commission found that the Waco Agreement will not cover the transferring employees when they become employed by EnergyAustralia. Instead, the EnergyAustralia Agreement will cover them. The decision was based on factors including the transferring employees’ preference for the EnergyAustralia Agreement, which offers higher weekly pay, and the economic disadvantage EnergyAustralia would incur if the Waco Agreement applied. The order will come into effect when the employees transfer to EnergyAustralia.
What it means for employers
Employers considering insourcing or transferring employees should carefully consider the impact on existing enterprise agreements. Failing to do so can lead to administrative costs and inefficiencies. It’s important to consult with employees and unions to ensure a smooth transition and avoid disadvantaging employees.
What it means for employees
Employees whose roles are transferring between employers should be aware of how their employment conditions will be affected. Unions can play a key role in advocating for employees’ interests during these transitions. In this case, the transferring employees will benefit from the terms of the EnergyAustralia Agreement.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections