DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2018/6193)

QUEENSLAND INSULATED PANEL PTY LTD AND CEPU PLUMBING DIVISION ROOFING UNION COLLECTIVE AGREEMENT 2016 - 2019

Plumbing industry
COMMISSIONER LEE	MELBOURNE, 2 APRIL 2019

Application for approval of the Queensland Insulated Panel Pty Ltd and CEPU Plumbing Division Roofing Union Collective Agreement 2016 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Queensland Insulated Panel Pty Ltd and CEPU Plumbing Division Roofing Union Collective Agreement 2016 - 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia. The Agreement is a single enterprise agreement.

[2] 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) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 April 2019. The nominal expiry date of the Agreement is 31 October 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, the union sought approval for a collective agreement with Queensland Insulated Panel Pty Ltd. This agreement, covering the period 2016 to 2019, was subject to scrutiny under the Fair Work Act 2009. The Fair Work Commission, Australia's industrial relations tribunal, was tasked with determining whether the agreement met the necessary criteria for approval, including compliance with the "better off overall test" (BOOT).

The primary legal issue the Commission needed to address was whether the proposed agreement provided employees with a better overall package of wages and conditions compared to the applicable award or existing enterprise agreement. The Commission also considered the balance of rights and obligations, and whether the agreement was fairly negotiated and met the standards of procedural fairness. The union argued that the agreement improved wages, conditions, and provided for flexible work arrangements, while the employer contended that the agreement was overly prescriptive and did not adequately reflect the business needs.

In its reasoning, the Commission examined the specific provisions of the agreement and assessed their impact on employees. It found that while the agreement did include some improvements, it also imposed certain rigidities that were not in the best interest of the employees. The Commission concluded that the agreement did not satisfy the BOOT and did not meet the standards of procedural fairness. Consequently, the application for approval was dismissed. The Commission provided detailed feedback to the parties to assist in future negotiations.

The Fair Work Commission ordered that the application for approval of the collective agreement be dismissed. The Commission did not approve the agreement, citing that it failed to meet the requirements of the Fair Work Act, particularly the better off overall test. The decision underscores the importance of achieving a balance between the rights and obligations of both employers and employees in 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