DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2018/3532)

PLANET PLUMBING (VIC) PTY LTD AND CEPU - PLUMBING DIVISION VICTORIAN BRANCH ENTERPRISE AGREEMENT 2016 - 2019

Plumbing industry
COMMISSIONER LEE	MELBOURNE, 18 SEPTEMBER 2018

Application for approval of the Planet Plumbing (Vic) Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2016 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Planet Plumbing (Vic) Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise 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] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 September 2018. The nominal expiry date of the Agreement is 31 October 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the Enterprise Agreement between Planet Plumbing (Vic) Pty Ltd and the CEPU – Plumbing Division Victorian Branch for the period 2016 to 2019. The union sought approval for the agreement under section 233 of the Fair Work Act 2009, while the employer opposed the application, arguing that the agreement did not meet the "better off overall test" as required by section 235 of the Act. The employer contended that the agreement unfairly disadvantaged them by imposing additional costs and obligations without providing commensurate benefits.

The central legal issue before the Commission was whether the agreement satisfied the "better off overall test," which mandates that employees must be no worse off and at least some employees must be better off financially under the new agreement compared to their previous conditions. The Commission had to assess if the terms of the agreement provided sufficient benefits to employees to offset any increased costs or obligations imposed on the employer. This involved a detailed examination of the financial implications of the agreement for both parties and an evaluation of whether the agreement provided a fair balance of benefits and obligations.

The Fair Work Commission determined that the agreement did indeed satisfy the "better off overall test." The Commission found that while the employer would incur additional costs, the agreement provided a range of benefits to employees that sufficiently offset these costs. Notably, the agreement included provisions for higher wages, improved working conditions, and enhanced leave entitlements, which the Commission considered to be more advantageous to the employees than the additional burden on the employer. As a result, the Commission approved the agreement, affirming that it met the necessary legal standards for approval under the Fair Work Act 2009.

The Commission's final order was to approve the Enterprise Agreement between Planet Plumbing (Vic) Pty Ltd and the CEPU – Plumbing Division Victorian Branch for the period 2016 to 2019, effective from the date of the Commission's decision. The agreement was to be implemented in accordance with the terms set out in the approved document, which was to be lodged with the Commission. The employer was required to provide a copy of the approved agreement to all affected employees within the specified timeframe.

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