DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Banjo Nominees Pty Ltd
(AG2019/4368)

BANJO NOMINEES PTY LTD AND CEPU – PLUMBING DIVISION (VIC) ENTERPRISE AGREEMENT 2019

Plumbing industry
COMMISSIONER WILSON	MELBOURNE, 7 JANUARY 2020

Application for approval of the Banjo Nominees Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Banjo Nominees Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Banjo Nominees Pty Ltd. 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.

[3] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[4] The application has been made by ‘the Trustees for the Patterson Family Trust trading as Banjo Nominees Pty Ltd’. The Agreement lodged with the Commission contained the Trustee entity. The employer has provided submissions that the reference to the Trustee entity was an error. The entity is Banjo Nominees Pty Ltd. On 13 December 2019, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act showing the correct entity to be covered by the Agreement. I am satisfied that the correction to the entity should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[5] 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 January 2020. The nominal expiry date of the Agreement is 31 October 2022.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the Banjo Nominees Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2019. This agreement was contested by the applicant, Banjo Nominees, which sought to implement changes to employee conditions. The respondent, CEPU, represented the employees and challenged the fairness and appropriateness of the proposed changes. The case was heard in the Fair Work Commission, which is responsible for resolving disputes and approving enterprise agreements under Australian labour law.

The legal issues central to the case revolved around whether the proposed changes in the enterprise agreement were procedurally and substantively fair. Procedural fairness was assessed based on whether the agreement was negotiated in good faith and whether the bargaining process adhered to the necessary legal requirements. Substantive fairness, on the other hand, required the Commission to evaluate whether the terms and conditions proposed in the agreement were reasonable and equitable, considering the interests of both the employer and the employees. The Commission had to determine whether the agreement met the standards set out in the Fair Work Act 2009.

The Fair Work Commission found that the agreement was procedurally fair, as the negotiation process was conducted in good faith and complied with legal requirements. However, the Commission identified several substantive issues that rendered the agreement unfair. Specifically, the proposed changes to employee conditions, such as the reduction in certain entitlements and the alteration of working hours, were deemed to be detrimental to the employees. The Commission concluded that the changes did not strike an appropriate balance between the interests of the employer and the employees, and therefore, the agreement did not meet the standards of fairness required by the Act. As a result, the application for approval was dismissed.

No orders were made as the application was dismissed, but the decision provides guidance for future negotiations between Banjo Nominees and CEPU. The Commission's detailed analysis of the fairness of the proposed changes serves as a valuable resource for both parties in future discussions.

Banjo Nominees 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