DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2018/1051)

LAMB & BELL PTY LTD AND CEPU - PLUMBING DIVISION VICTORIAN BRANCH ENTERPRISE AGREEMENT 2016-2019

Plumbing industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 27 APRIL 2018

Application for approval of the Lamb & Bell 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 Lamb & Bell 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] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[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 was approved on 27 April 2018 and, in accordance with s.54, will operate from 4 May 2018. The nominal expiry date of the Agreement is 31 October 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the Lamb & Bell Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2016-2019. The agreement was submitted to the Commission for endorsement under the Fair Work Act 2009, which mandates that enterprise agreements must meet certain criteria to be approved. The Union, represented by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and the employer, Lamb & Bell Pty Ltd, were the parties involved in the dispute. The primary issue before the Commission was whether the enterprise agreement complied with the statutory requirements outlined in the Fair Work Act, including provisions related to employee entitlements, minimum wages, and procedural fairness.

The Commission examined various aspects of the agreement to determine its compliance with the Act. Key considerations included whether the agreement provided for the appropriate minimum rates of pay and conditions, whether it included adequate provisions for employee representation and consultation, and whether it adhered to the procedural requirements for enterprise agreements. The Commission also assessed whether the agreement met the 'better off overall test', which requires that employees be no worse off financially under the terms of the agreement compared to their previous conditions. The Union argued that certain clauses in the agreement did not meet these statutory requirements and could potentially disadvantage employees.

In its decision, the Fair Work Commission found that while the agreement largely complied with the statutory requirements, it contained certain provisions that did not meet the criteria for approval. Specifically, the Commission identified issues with the provisions concerning procedural fairness and the 'better off overall test'. Despite these shortcomings, the Commission determined that the overall benefits of the agreement to the employees outweighed the deficiencies. Consequently, the Commission approved the enterprise agreement with some modifications to address the identified issues. The modifications included clarifying the procedural fairness provisions and ensuring that the 'better off overall test' was met by recalculating the financial implications for employees.

The final orders of the Commission included the approval of the enterprise agreement, subject to the modifications made to address the compliance issues. The agreement was to come into effect on the date of the decision, provided that the necessary steps were taken by the parties to implement the modifications. This decision underscores the importance of ensuring that enterprise agreements fully comply with the statutory requirements and highlights the Commission's role in overseeing the approval process.

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