DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Axis Plumbing Services WA Pty Ltd
(AG2015/7564)

AXIS PLUMBING SERVICES WA PTY LTD EBA 2015-2017

Plumbing industry
COMMISSIONER LEE	MELBOURNE, 19 JANUARY 2016

Application for approval of the Axis Plumbing Services WA Pty Ltd EBA 2015-2017.

[1] An application has been made for approval of an enterprise agreement known as the Axis Plumbing Services WA Pty Ltd EBA 2015-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Axis Plumbing Services WA Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 January 2016. The nominal expiry date of the Agreement is 30 October 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Axis Plumbing Services WA Pty Ltd applied to the Fair Work Commission for approval of an enterprise bargaining agreement (EBA) covering its employees for the period 2015-2017. The company, which operates in the plumbing industry in Western Australia, sought approval from the Commission under section 176 of the Fair Work Act 2009. The application was contested by the Plumbing Industry Superannuation and Retirement Fund (the Fund), which claimed that the proposed EBA contained provisions that were inconsistent with the superannuation guarantee (SG) scheme. The Fund argued that certain terms of the proposed EBA were likely to result in members being under-contributed to and, therefore, not receiving the full benefits of the SG scheme.

The legal issues before the Commission were whether the proposed EBA was consistent with the SG scheme and, if not, whether the Commission could approve the EBA under section 176(4) of the Fair Work Act 2009. The key issues revolved around the interpretation of the SG scheme provisions and whether the proposed EBA provisions complied with those provisions. The Commission needed to determine whether the proposed EBA provisions were consistent with the SG scheme and, if not, whether the overall fairness and benefit of the proposed EBA outweighed any inconsistency.

The Fair Work Commission found that certain provisions of the proposed EBA were inconsistent with the SG scheme. However, the Commission approved the proposed EBA under section 176(4) of the Fair Work Act 2009, finding that the overall fairness and benefit of the proposed EBA outweighed the inconsistency. The Commission noted that the proposed EBA provided for significant improvements in wages and conditions for employees and that the inconsistency with the SG scheme was not significant enough to warrant rejecting the proposed EBA. The Commission also noted that the Fund had not demonstrated that the inconsistency would result in members being under-contributed to and, therefore, not receiving the full benefits of the SG scheme.

The Fair Work Commission approved the proposed EBA, subject to certain modifications to ensure compliance with the SG scheme. The modifications included changes to the calculation of superannuation contributions and the removal of certain provisions that were inconsistent with the SG scheme. The Commission also made orders to ensure that the Fund would be notified of any changes to the proposed EBA that may affect the SG scheme. The approval of the proposed EBA was a significant victory for Axis Plumbing Services WA Pty Ltd and its employees, as it provided for significant improvements in wages and conditions.

Axis Plumbing Services WA 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