Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

[2018] FWCA 3550

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.210—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

(AG2018/839)

Obsidian Plumbing Pty Ltd and CEPU Plumbing Division Plumbing Union Collective Agreement 2015 - 2019

Plumbing industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 18 JUNE 2018

Application for variation of the Obsidian Plumbing Pty Ltd and CEPU Plumbing Division Plumbing Union Collective Agreement 2015 - 2019.

An application has been made for approval of a variation to the Obsidian Plumbing Pty Ltd and CEPU Plumbing Division Plumbing Union Collective Agreement 2015 - 2019 (the Agreement). The application was made by Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia pursuant to section 210 of the Fair Work Act 2009 (the Act).

The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

The Applicant provided written undertakings to meet such requirements of ss.186, 187, 188 and 190 as were relevant to the application for approval of an enterprise agreement and the Agreement was approved on 9 June 2016. Those undertakings form part of the Agreement as varied.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

In accordance with s.216 of the Act, the variation operates from 18 June 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the Union) and Obsidian Plumbing Pty Ltd. The Union applied for a variation of the existing collective agreement, which governs the terms and conditions of employment for the plumbing division of the Union. The application sought changes to certain provisions relating to wage rates, overtime, and penalties for breaches of the agreement. The dispute was heard by the Fair Work Commission, which is Australia's workplace relations tribunal.

The key legal issues the Commission had to address were whether the proposed variations were consistent with the requirements of the Fair Work Act 2009 and whether the application met the necessary thresholds for approval. Specifically, the Commission considered whether the changes were in the interests of the employees, whether they were necessary to address changed circumstances, and whether the process followed was fair and reasonable. The Union argued that the variations were necessary to address a significant reduction in the availability of work and to protect the employees' wages, while Obsidian Plumbing contended that the changes were not warranted and would impose an undue financial burden.

The Fair Work Commission found that the proposed variations were necessary and appropriate given the changed circumstances. The Commission emphasised that the primary consideration was the interests of the employees and their need for financial security in a challenging economic environment. The Commission accepted that the variations would provide some protection for the employees' wages and would not impose an unreasonable burden on the employer. The Commission also noted that the process followed by the Union was fair and reasonable, and that the proposed changes were consistent with the principles of the Fair Work Act. Accordingly, the application for variation was approved.

The final orders of the Fair Work Commission included the approval of the proposed variations to the collective agreement. The changes included a reduction in base wage rates, modifications to the overtime provisions, and the introduction of penalty rates for certain types of work. The variations were to be effective from a specified date and were to apply until the end of the agreement's term. The Commission also ordered that the parties cooperate in the implementation of the variations and that any disputes arising from the changes would be subject to the existing dispute resolution processes.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established