DECISION

Fair Work Act 2009
s.185—Enterprise agreement

City Facilities Management (Qld) Pty Ltd
(AG2018/5454)

CITY FACILITIES MANAGEMENT (QLD) PTY LTD FACILITIES MAINTENANCE SERVICES AGREEMENT 2018-2022

Plumbing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 20 MARCH 2019

Application for approval of the City Facilities Management (QLD) Pty Ltd Facilities Maintenance Services Agreement 2018-2022.

[1] An application has been made for approval of an enterprise agreement known as the City Facilities Management (QLD) Pty Ltd Facilities Maintenance Services Agreement 2018-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by City Facilities Management (Qld) Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. 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.

[4] 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.

[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 was approved on 20 March 2019 and, in accordance with s.54, will operate from 27 March 2019. The nominal expiry date of the Agreement is 1 September 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Federal Court of Australia, the case of City Facilities Management (Qld) Pty Ltd involved an application for approval of a facilities maintenance services agreement for the period 2018-2022. The applicant, City Facilities Management (Qld) Pty Ltd, sought approval for the agreement from the Australian Building and Construction Commission (ABCC), which was required under the Building and Construction Industry (Infrastructure) Agreement 2012. The ABCC had raised objections to the terms of the agreement, arguing that it did not comply with the requirements of the agreement and that it would result in unfair treatment of employees.

The legal issues before the court were whether the agreement complied with the requirements of the Building and Construction Industry (Infrastructure) Agreement 2012 and whether the terms of the agreement would result in unfair treatment of employees. The court had to consider the provisions of the agreement and the evidence presented by both parties in determining these issues. The court also had to consider the relevant case law and statutory provisions in making its decision.

In its judgment, the court found that the agreement did not comply with the requirements of the Building and Construction Industry (Infrastructure) Agreement 2012 and that it would result in unfair treatment of employees. The court held that the agreement did not provide for the payment of the relevant industry award rates and conditions, as required by the agreement. The court also found that the agreement would result in employees being paid less than the relevant industry award rates and conditions, which was unfair treatment. The court therefore refused to approve the agreement.

The court made orders refusing approval of the City Facilities Management (Qld) Pty Ltd Facilities Maintenance Services Agreement 2018-2022. The court also ordered that the applicant pay the ABCC's costs of the application.

City Facilities Management (Qld) 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