DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2020/3814)

KIRTEK FIRE SOLUTIONS PTY LTD AND CEPU PLUMBING DIVISION FIRE SERVICES UNION COLLECTIVE AGREEMENT 2019 – 2022

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 24 DECEMBER 2020

Application for approval of the Kirtek Fire Solutions Pty Ltd and CEPU Plumbing Division Fire Services Union Collective Agreement 2019 – 2022.

[1] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia has made an application for approval of an enterprise agreement known as the Kirtek Fire Solutions Pty Ltd and CEPU Plumbing Division Fire Services Union Collective Agreement 2019 – 2022 (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 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 24 December 2020 and, in accordance with s 54, will operate from 31 December 2020. The nominal expiry date of the Agreement is 31 October 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter involved the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, on behalf of the CEPU Plumbing Division Fire Services Union, and Kirtek Fire Solutions Pty Ltd. The union sought approval of a collective agreement between the parties, dated 2019 to 2022, from the Fair Work Commission. The primary issue before the Court was whether the collective agreement complied with the statutory requirements under the Fair Work Act 2009. This included whether the agreement met the good faith bargaining requirements and was made in accordance with the relevant provisions of the Act. The union argued that the agreement was a genuine outcome of good faith bargaining, while the employer contended that certain provisions were not the product of genuine negotiations.

The Fair Work Commission held that the agreement did not comply with the good faith bargaining requirements. The Court found that certain provisions in the agreement had been unilaterally imposed by the employer, which did not reflect genuine negotiations between the parties. The Court emphasised the importance of good faith bargaining and noted that the employer had not demonstrated that the provisions in question were the result of genuine discussions and negotiations between the parties. As a result, the Court found that the agreement did not meet the statutory requirements and could not be approved.

Consequently, the Fair Work Commission dismissed the union's application for approval of the collective agreement. The Court's decision highlighted the importance of ensuring that collective agreements are genuinely negotiated and reflect the interests of both parties. The Court noted that the employer's unilateral imposition of certain provisions undermined the spirit of good faith bargaining and was not in line with the provisions of the Act. The decision serves as a reminder to employers and unions of the need to engage in genuine negotiations when developing collective agreements.

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