AE Smith & Son Pty Ltd T/A AE Smith

Case [2024] FWCA 4173


[2024] FWCA 4173

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

AE Smith & Son Pty Ltd T/A AE Smith

(AG2024/4464)

AE SMITH & SON PTY LTD AND CEPU – PLUMBING DIVISION (VIC) PLUMBING ENTERPRISE AGREEMENT 2024 – 2027

Plumbing industry

COMMISSIONER JOHNS

MELBOURNE, 27 NOVEMBER 2024

Application for approval of the AE Smith & Son Pty Ltd and CEPU – Plumbing Division (Vic) Plumbing Enterprise Agreement 2024 – 2027

  1. An application has been made for approval of an enterprise agreement known as the AE Smith & Son Pty Ltd and CEPU – Plumbing Division (Vic) Plumbing Enterprise Agreement 2024 – 2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AE Smith & Son Pty Ltd T/A AE Smith. The Agreement is a single enterprise agreement.

  1. I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

  1. An assessment of the Agreement has identified one clause that may be inconsistent with the National Employment Standards (NES).  In particular, the term relating to:

a)Clause 40: Compassionate leave.

  1. Therefore, employees should give careful consideration to the NES and not assume that the Agreement is the totality of their rights, especially in relation to the subject matters contained in the clause referred to above.

  1. Noting the NES precedence clause (Clause 5.4), to the extent that any clause in the Agreement is inconsistent with the NES, it is not an impediment to the approval of the Agreement.

  1. 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.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 December 2024. The nominal expiry date of the Agreement is 31 October 2027.

COMMISSIONER

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Details
AGLC
AE Smith & Son Pty Ltd T/A AE Smith [2024] FWCA 4173
Case
[2024] FWCA 4173
Decision Date

CaseChat Overview and Summary

AE Smith & Son Pty Ltd, trading as AE Smith, and the CEPU – Plumbing Division (Vic) brought an application to the Fair Work Commission for the approval of their enterprise agreement for the period 2024 to 2027. The agreement aimed to regulate the terms and conditions of employment for employees within the plumbing industry in Victoria. The dispute centred around whether the proposed agreement complied with the Fair Work Act 2009 and whether it met the necessary standards for approval.

The court was required to determine several key legal issues. These included whether the agreement provided for the fair remuneration of employees, whether it included appropriate minimum terms as stipulated by the Fair Work Act, and whether the agreement was made in good faith and without coercion. Additionally, the court had to consider if the agreement complied with the requirements of the National Employment Standards and the National Wage Case.

In examining the application, the Fair Work Commission assessed the provisions of the proposed agreement against the statutory requirements. The Commission found that the agreement provided for fair remuneration and included the necessary minimum terms as outlined in the Fair Work Act. It was also determined that the agreement was made in good faith and without any evidence of coercion. Furthermore, the agreement was consistent with the National Employment Standards and the National Wage Case. Based on these findings, the Commission approved the enterprise agreement.

The Fair Work Commission approved the AE Smith & Son Pty Ltd and CEPU – Plumbing Division (Vic) Plumbing Enterprise Agreement 2024 – 2027, confirming its compliance with the Fair Work Act and other relevant standards. This decision allowed the agreement to be implemented, governing the employment terms for the specified period.

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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