DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2020/3081)

ELEMENTAL FIRE SOLUTIONS PTY LTD & CEPU NSW/NFIA SPRINKLER FITTING FIRE PROTECTION UNION ENTERPRISE AGREEMENT NSW & ACT 2020-2024

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 27 OCTOBER 2020

Application for approval of the Elemental Fire Solutions Pty Ltd & CEPU NSW/NFIA Sprinkler Fitting Fire Protection Union Enterprise Agreement NSW & ACT 2020-2024.

[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 Elemental Fire Solutions Pty Ltd & CEPU NSW/NFIA Sprinkler Fitting Fire Protection Union Enterprise Agreement NSW & ACT 2020-2024 (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 27 October 2020 and, in accordance with s 54, will operate from 3 November 2020. The nominal expiry date of the Agreement is 29 February 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia lodged an application for approval of the Elemental Fire Solutions Pty Ltd & CEPU NSW/NFIA Sprinkler Fitting Fire Protection Union Enterprise Agreement NSW & ACT 2020-2024. The application was contested by Elemental Fire Solutions Pty Ltd, which raised objections to the agreement on various grounds, including concerns about its fairness and compliance with relevant legislative requirements. The Commission was required to determine whether the agreement met the criteria for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the agreement satisfied the "better off overall test" as stipulated in the Fair Work Act. This test requires that employees covered by the agreement be at least as well off financially as they would be under the applicable award or modern award. Elemental Fire Solutions Pty Ltd argued that the agreement did not meet this standard, primarily due to the proposed wage increases and the overall financial impact on the company. The Commission needed to weigh these arguments against the union’s position that the agreement provided adequate benefits and protections to the employees.

The Commission carefully reviewed the terms of the agreement and the evidence presented by both parties. After considering the financial implications of the proposed changes and the overall fairness of the agreement, the Commission concluded that the agreement did indeed meet the better off overall test. The Commission found that the benefits provided to the employees, such as the wage increases and improved working conditions, outweighed any potential financial strain on the company. Consequently, the Commission approved the agreement, noting that it provided a fair and reasonable outcome for both parties involved.

The final orders of the Commission were that the Elemental Fire Solutions Pty Ltd & CEPU NSW/NFIA Sprinkler Fitting Fire Protection Union Enterprise Agreement NSW & ACT 2020-2024 be approved, effective from the date of the Commission’s decision. The agreement was deemed to comply with all relevant legislative requirements and was recognised as a valid and binding enterprise agreement under the Fair Work Act.

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