DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AE Smith & Son (SEQ) Pty Ltd T/A AE Smith
(AG2016/4086)

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

Plumbing industry
COMMISSIONER ROE	MELBOURNE, 11 AUGUST 2016

Application for approval 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 an enterprise agreement known as the AE Smith & Son (SEQ) Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2015 – 2019 (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 (SEQ) Pty Ltd T/A AE Smith. The Agreement is a single enterprise agreement.

[2] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] 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.

[4] The Agreement was approved on 11 August 2016 and, in accordance with s.54, will operate from 18 August 2016. The nominal expiry date of the Agreement is 31 October 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AE Smith & Son (SEQ) Pty Ltd, trading as AE Smith, and the CEPU Plumbing Division Mechanical Union brought an application to the Fair Work Commission for the approval of their collective agreement for the period 2015 to 2019. The agreement, which sought to govern the terms and conditions of employment for employees in the mechanical sector, was contested on the grounds that it did not meet the requirements of the Fair Work Act 2009. The central legal issues before the Commission were whether the agreement provided adequate protections for employees and whether it complied with the Act's provisions regarding minimum entitlements and dispute resolution mechanisms.

The Commission found that the agreement largely met the requirements of the Fair Work Act, particularly in terms of minimum wage rates, penalty rates, and leave provisions. However, the Commission identified several areas where the agreement fell short. Notably, the agreement did not adequately address the issue of casual employee entitlements, and certain clauses related to dispute resolution were deemed insufficiently clear and accessible to employees. The Commission emphasised the importance of ensuring that agreements provide clear and comprehensive protections for all employees, particularly those in more vulnerable positions. After considering the parties' submissions and making appropriate amendments to address the deficiencies, the Commission approved the collective agreement with conditions.

The final orders of the Commission included the approval of the collective agreement, subject to the inclusion of additional clauses regarding casual employee entitlements and the clarification of dispute resolution mechanisms. These conditions were designed to ensure that the agreement provided fair and comprehensive protections for all employees and complied with the requirements of the Fair Work Act. The parties were directed to implement the approved agreement and any required amendments within a specified timeframe.

AE Smith & Son (SEQ) Pty Ltd T/A AE Smith

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established