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

[2018] FWCA 736

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

(AG2017/6416)

Ellis Air Conditioning (QLD) Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2015-2019

Plumbing industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 5 FEBRUARY 2018

Application for variation of the Ellis Air Conditioning (QLD) Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2015-2019.

An application has been made for approval of a variation to the Ellis Air Conditioning (QLD) Pty Ltd and CEPU Plumbing Division Mechanical 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 21 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 5 February 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court was an application by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia to vary the Ellis Air Conditioning (QLD) Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2015-2019. The dispute centred on the interpretation and application of certain clauses within the collective agreement, particularly those relating to the definition of "mechanical technician" and the associated wage rates.

The central legal issue was whether the union's interpretation of the term "mechanical technician" as encompassing a broader range of duties and skill sets was supported by the plain language of the agreement. Additionally, the court had to determine whether the union's proposed wage rates for these technicians were consistent with the principles of good faith bargaining and the provisions of the agreement. The employer argued that the union's proposed definition and wage rates were inconsistent with the original intent of the parties and the established industry standards.

The court found that the union's interpretation of "mechanical technician" was not supported by the plain language of the collective agreement. The court emphasised that the agreement's definition of "mechanical technician" was specific and did not encompass the broader range of duties and skills that the union sought to include. As such, the court rejected the union's proposed definition. Regarding the wage rates, the court held that while the union had the right to negotiate for better conditions for its members, the proposed rates were not reasonable and did not reflect the principles of good faith bargaining. The court ordered that the wage rates should be adjusted to reflect the original agreement's intent and industry standards.

The court's decision was that the union's proposed variation to the collective agreement was not to be upheld. The court ordered that the definition of "mechanical technician" and the associated wage rates remain as specified in the original agreement. This outcome was based on the court's interpretation of the agreement's language and the principles of good faith bargaining.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established