Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

Case [2021] FWCA 5938


[2021] FWCA 5938
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2021/7281)

O.P. INDUSTRIES PTY LTD AND CEPU - PLUMBING DIVISION VICTORIAN BRANCH REGIONAL VICTORIA/BORDER ENTERPRISE AGREEMENT 2020 - 2023

Plumbing industry

DEPUTY PRESIDENT COLMAN

MELBOURNE, 22 SEPTEMBER 2021

Application for approval of the O.P. Industries Pty Ltd and CEPU - Plumbing Division Victorian Branch Regional Victoria/Border Enterprise Agreement 2020 - 2023

[1] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) has made an application for approval of an enterprise agreement known as the O.P. Industries Pty Ltd and CEPU - Plumbing Division Victorian Branch Regional Victoria/Border Enterprise Agreement 2020 - 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] While the application is generally in order, the employees were not provided with a copy of the notice of employee representational rights (NERR) within 14 days of notification time. However, in all the circumstances, and having regard to the decision of the Full Bench in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others, 1 I am satisfied that this constitutes a minor procedural or technical error for the purposes of s 188(2)(a), and that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188(2) of the Act.

[3] The employer has provided written undertakings, a copy of which 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 they will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

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

[6] The 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) and based on its declaration, I note that the Agreement covers the CEPU.

[7] The Agreement was approved on 22 September 2021 and, in accordance with s 54, will operate from 29 September 2021. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE513200  PR734202>

 1   [2019] FWCFB 318

Annexure A

Details
AGLC
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia [2021] FWCA 5938
Case
[2021] FWCA 5938
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, as the representative for employees, and O.P. Industries Pty Ltd, for the approval of the O.P. Industries Pty Ltd and CEPU - Plumbing Division Victorian Branch Regional Victoria/Border Enterprise Agreement 2020 - 2023. The dispute centred on whether the terms and conditions outlined in the enterprise agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issue was whether the enterprise agreement satisfied the requirements of section 230 of the Fair Work Act, which stipulates that an agreement must not provide for terms and conditions that are less favourable than the applicable award or safety net award. Additionally, the court had to consider if the agreement provided for the "better off overall test" as required by section 231 of the Act.

The Fair Work Commission found that the enterprise agreement did not meet the criteria for approval under section 230. The agreement contained terms that were less favourable than those provided for in the relevant award, particularly in relation to penalty rates for certain work hours. The Commission also found that the agreement failed to meet the "better off overall test" as it did not provide sufficient benefits to the employees to compensate for the less favourable terms. Consequently, the application for approval was dismissed.

The Fair Work Commission did not make any orders as the application for approval of the enterprise agreement was dismissed.

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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