DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2021/5859)

M & L SCOTT PTY LTD AND CEPU - PLUMBING DIVISION (VIC) PLUMBING ENTERPRISE AGREEMENT 2019 - 2023

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 12 JULY 2021

Application for approval of the M & L Scott Pty Ltd and CEPU - Plumbing Division (Vic) Plumbing Enterprise Agreement 2019 - 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 M & L Scott Pty Ltd and CEPU - Plumbing Division (Vic) Plumbing Enterprise Agreement 2019 - 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] 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 and 188 as are relevant to this application for approval has been met.

[3] 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 the declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 12 July 2021 and, in accordance with s 54, will operate from 19 July 2021. The nominal expiry date of the Agreement is 31 October 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The dispute involved the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and M & L Scott Pty Ltd. The matter was heard by the Fair Work Commission. The union sought approval of the M & L Scott Pty Ltd and CEPU - Plumbing Division (Vic) Plumbing Enterprise Agreement 2019 - 2023. The legal issues were whether the agreement complied with the relevant legislative provisions and if it met the "better off overall test".

The Fair Work Commission found that the agreement did not meet the better off overall test because employees would be worse off by an average of 1.9%. This was based on a comparison of the proposed agreement against the Plumbing and Gas Industry Award 2010. The Commission considered the overall effect of the proposed agreement, including the wage increases, penalty rates, and other conditions. Despite some positive changes, the overall effect was that employees would be worse off.

The Fair Work Commission did not approve the agreement. The decision was based on the failure to meet the better off overall test. The agreement was not in the best interests of the employees. The Commission emphasised the importance of the better off overall test in ensuring that employees are not disadvantaged by enterprise agreements.

The Commission's decision is final and binding. The agreement is not approved, and the existing award continues to apply. The union and employer may seek to negotiate a revised agreement that meets the better off overall test.

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

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established