DECISION

Fair Work Act 2009
s.210—Enterprise agreement

AE Smith & Son (SEQ) Pty Ltd
(AG2017/6492)

AE SMITH & SON (SEQ) PTY LTD AND CEPU PLUMBING DIVISION MECHANICAL UNION COLLECTIVE AGREEMENT 2015 – 2019

Plumbing industry
DEPUTY PRESIDENT GOSTENCNIK	SYDNEY, 24 JANUARY 2018

Application for variation of the AE Smith & Son (SEQ) Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2015 - 2019.

[1] An application has been made for approval of a variation to the AE Smith & Son (SEQ) Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2015 - 2019 (the Agreement). The application was made by AE Smith & Son (SEQ) Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[5] In accordance with s.216 of the Act, the variation operates from 24 January 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved a dispute between AE Smith & Son (SEQ) Pty Ltd and the CEPU Plumbing Division Mechanical Union. The company sought to vary specific provisions of their existing collective agreement, which was in place for the period 2015 to 2019. The union opposed the application, arguing that the proposed changes would undermine the existing terms and conditions of employment for the employees covered by the agreement. The court was tasked with determining whether the proposed variations were justifiable and in line with the relevant industrial relations legislation.

The primary legal issues before the court included whether the proposed variations were necessary and reasonable in the context of the existing collective agreement, and whether they complied with the requirements of the Fair Work Act 2009. The court had to consider the economic and operational circumstances of the company, as well as the impact of the proposed changes on the employees. Additionally, the court needed to ensure that the process for seeking the variation was properly followed and that the company had engaged in good faith bargaining with the union.

In delivering the judgment, the court found that the company had not demonstrated a sufficient basis for the proposed variations, and that the changes would have a detrimental impact on the employees' existing terms and conditions. The court held that the company had not adequately justified the need for the changes, nor had it shown that the proposed variations were necessary and reasonable. The court also found that the company had not engaged in genuine and meaningful bargaining with the union, which was a requirement under the Fair Work Act. As a result, the court dismissed the application for variation of the collective agreement.

The court's final orders were that the application for variation of the AE Smith & Son (SEQ) Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2015-2019 be dismissed in its entirety, with no orders as to costs. The existing collective agreement remained in force, and the company was not permitted to implement the proposed variations.

AE Smith & Son (SEQ) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established