NECA is appealing the Fair Work Commission’s (FWC) approval of an enterprise agreement, which it claims is unaffordable for business and will lead to apprentice job losses.

In the middle of the pandemic, when many people were unable to work, NECA says that the Electrical Trades Union (ETU)-owned training organisation, Electrogroup Group Training, forced through the agreement without properly consulting industry or apprentices.

Electrogroup employs apprentices who gain on-the-job experience with host electrical contractors – often on taxpayer-funded infrastructure projects.

The agreement gives electrical apprentices exorbitant wage increases of up to 74%. It is also non-compliant with the Australian Building and Construction Commission’s Code for the Tendering and Performance of Building Work 2016 as it includes a ‘pull-up’ clause which is not permitted.

The effect of non-compliance will mean apprentices employed under the agreement cannot work on any project that receives Commonwealth Government funding, such as Western Sydney Airport and the Great Western Highway Upgrade. If found to be in breach of the Code, host contractors face fines and penalties.

This has forced hosts to stop using Electrogroup apprentices, with dozens already sent back and more than 50 expected to return to Electrogroup. When the agreement comes into force, apprentices will face the prospect of not finding a host company.

“This doesn’t pass the pub test. It’s a slap in the face for all those workers and businesses who’ve only been able to reopen this week after being shut for months as a result of the pandemic,” NECA chief executive Oliver Judd says.

“These huge increases have not been factored into jobs under delivery. After a period when construction was shut down or under worker limits for weeks, how can anybody seriously think an employer can absorb 74% pay increases when the number one priority is simply keeping people in jobs.

“Australia is recovering economically and facing a potential skilled worker challenge over the coming years. Our priority should be ensuring we’re fostering the development of apprentices into future electricians. Implementing unreasonable pay increases will put further strain on businesses’ ability to supply new workers.”

NECA informed the FWC the agreement would lead to job losses, was non-compliant with the Code and that these key points were not properly explained to affected apprentices. The FWC found it did “not require that enterprise agreements comply with the Building Code”, and the risks of job losses were “too remote” for there to be an obligation for Electrogroup to explain this to their apprentices.