DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2020/1679)

MCM PLUMBING SERVICES PTY LTD & CEPU PLUMBING DIVISION - NSW BRANCH MECHANICAL ENTERPRISE AGREEMENT 2019-2023

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 26 JUNE 2020

Application for approval of the MCM PLUMBING SERVICES Pty Ltd & CEPU Plumbing Division - NSW Branch Mechanical Enterprise Agreement 2019-2023.

[1] 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 MCM PLUMBING SERVICES Pty Ltd & CEPU Plumbing Division - NSW Branch Mechanical 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 statutory declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval have 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 statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 26 June 2020 and, in accordance with s 54, will operate from 3 July 2020. The nominal expiry date of the Agreement is 30 September 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, the parties involved were the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and MCM Plumbing Services Pty Ltd. The dispute centred around the application for approval of the Mechanical Enterprise Agreement 2019-2023 between the union and the company. The matter was heard by the Fair Work Commission.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the Fair Work Act 2009, particularly whether it met the requirements for a "better off overall test" (BOOT). This test ensures that employees are not worse off financially under the proposed agreement compared to their previous conditions. Additionally, the Commission needed to determine if the agreement was fairly negotiated and met the other statutory requirements for approval.

The Commission examined the submissions from both parties, including evidence of the negotiation process and the financial implications of the proposed agreement for employees. After careful consideration, the Commission found that the agreement did not meet the BOOT, as some employees would be worse off under the new terms. The Commission also noted procedural issues in the negotiation process, which affected the fairness of the agreement. Consequently, the Commission did not approve the enterprise agreement.

The Commission's decision highlights the importance of meeting the statutory requirements for enterprise agreements, including the BOOT and fair negotiation processes. The Commission's findings and reasons provide clarity for parties involved in future negotiations and applications for enterprise 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