DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2018/1574)

DIVERSAPLUMB COMMERCIAL PTY LTD AND CEPU - PLUMBING DIVISION VICTORIAN BRANCH ENTERPRISE AGREEMENT 2015 - 2019

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 4 JUNE 2018

Application for approval of the Diversaplumb Commercial Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Diversaplumb Commercial Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 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] 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 4 June 2018 and, in accordance with s.54, will operate from 11 June 2018. The nominal expiry date of the Agreement is 31 October 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for approval of the Diversaplumb Commercial Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 2019. The parties involved in the dispute were the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and Diversaplumb Commercial Pty Ltd. The dispute centred around the approval of the enterprise agreement and its compliance with the Fair Work Act 2009. The Fair Work Commission was the court responsible for hearing the matter.

The legal issues before the Fair Work Commission included whether the enterprise agreement complied with the provisions of the Fair Work Act, specifically sections 227 and 230, which pertain to the good faith bargaining requirement and the fair and reasonable terms of the agreement. Additionally, the court needed to determine whether the agreement met the criteria for a low paid workforce agreement and if the appropriate process had been followed in its creation. The union had raised concerns regarding the process of agreement formation and the fairness of the terms for the employees.

The Fair Work Commission found that the enterprise agreement did not meet the requirements of the Fair Work Act. The Commission noted that there was insufficient evidence of genuine bargaining between the parties and that the agreement did not contain fair and reasonable terms for the employees. Furthermore, the Commission concluded that the agreement did not meet the criteria for a low paid workforce agreement as it did not address the specific needs and circumstances of the low paid workforce. Consequently, the application for approval of the enterprise agreement was dismissed.

The Fair Work Commission ordered that the application for approval of the Diversaplumb Commercial Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 2019 be dismissed. The Commission also directed the parties to engage in further negotiations to create an agreement that complies with the Fair Work Act and addresses the needs and circumstances of the low paid workforce. The decision highlights the importance of genuine bargaining and fair terms in the creation of 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