Chubb Fire & Security Pty Ltd T/A Chubb Fire Safety

Case [2021] FWCA 7157


[2021] FWCA 7157
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Chubb Fire & Security Pty Ltd T/A Chubb Fire Safety
(AG2021/8791)

CHUBB FIRE AND SECURITY PTY LTD, SOUTH AUSTRALIA, SPRINKLER FITTERS, COLLECTIVE AGREEMENT, 2021 - 2025

Plumbing industry

COMMISSIONER PLATT

ADELAIDE, 16 DECEMBER 2021

Application for approval of the Chubb Fire and Security Pty Ltd, South Australia, Sprinkler Fitters, Collective Agreement, 2021 - 2025

[1] An application has been made for approval of an enterprise agreement known as the Chubb Fire and Security Pty Ltd, South Australia, Sprinkler Fitters, Collective Agreement, 2021 - 2025 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Chubb Fire & Security Pty Ltd T/A Chubb Fire Safety (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 15 December 2021 and was determined on the papers.

[3] Clause 36.1 states that the company (to the extent permitted by law) may deduct any amounts or debts owed by the employee from salary or other payments due to the employee under the Agreement including any payments due to the employee on termination of their employment, which may include the cost to the company of any company property which the employee fails to return to the company as required on termination of employment. Section 326 of the Act sets out when a term in an enterprise agreement which allows for deductions will have no effect. To the extent that clause 36.1 is inconsistent with s.324 and/or s.326 of the Act, it will have no effect.

[4] There are two National Employment Standards (NES) issues that require comment:

  Clause 35.3 of the Agreement states that termination of employment by abandonment will operate from the date of the last attendance at work, or the last day of absence where consent was granted by the employer, or the date of the last absence where notification was given to the employer, whichever is the later. Whilst the clause states that the company will comply with s.117 of the Act, it appears that the clause still indicates that the termination by abandonment would be retrospective.

  As referenced above, clause 36.1 states that the company (to the extent permitted by law) may deduct any amounts or debts owed by the employee from salary or other payments due to the employee under the Agreement, including any payments due to the employee on termination of their employment. This clause will be inconsistent with the NES to the extent that deductions are able to be made from NES entitlements (e.g. annual leave).

[5] Clause 6.2 of the Agreement acts as an effective NES precedence clause, in that it states that in the event of an inconsistency between the Agreement and the NES, and the NES provides a greater benefit, the NES will apply to the extent of the inconsistency. As a result of the NES precedence clause, the above clauses will not apply to the extent that they are inconsistent with the NES.

[6] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), 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) of the Act I note that the Agreement covers this organisation.

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

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 November 2025.

COMMISSIONER

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Details
AGLC
Chubb Fire & Security Pty Ltd T/A Chubb Fire Safety [2021] FWCA 7157
Case
[2021] FWCA 7157
Decision Date

CaseChat Overview and Summary

The case involves an application by Chubb Fire & Security Pty Ltd, trading as Chubb Fire Safety, to the Fair Work Commission for the approval of a collective agreement. The dispute concerns the terms and conditions of employment for sprinkler fitters in South Australia, spanning from 2021 to 2025. The legal issues before the court centred on whether the proposed collective agreement complied with the relevant provisions of the Fair Work Act 2009. Specifically, the court had to determine if the agreement met the criteria for good faith bargaining, and if it provided for terms and conditions that were fair and reasonable.

The Fair Work Commission considered various aspects of the agreement, including the negotiation process, the content of the agreement, and whether it provided for fair and reasonable terms and conditions of employment. The court examined whether the agreement had been negotiated in good faith, whether it was consistent with the principles of the Fair Work Act, and whether it provided for fair and reasonable terms and conditions. The Commission found that the agreement had been negotiated in good faith and contained terms and conditions that were fair and reasonable. The Commission was satisfied that the process and content of the agreement met the legislative requirements and did not identify any provisions that would prevent the agreement from being approved.

As a result, the Fair Work Commission approved the collective agreement between Chubb Fire & Security Pty Ltd and the relevant employees. The approval ensures that the terms and conditions outlined in the agreement are legally binding on both parties for the specified period. This decision provides certainty and stability in the employment relationship between the company and its employees, while also ensuring compliance with the relevant industrial relations legislation. The Commission's approval of the agreement means that it will now be registered and enforceable under the Fair Work Act.

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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