DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2017/5050)

JENNINGS PIPEWORK SERVICES PTY LTD & CEPU PLUMBING DIVISION – NSW BRANCH MECHANICAL ENTERPRISE AGREEMENT 2015-2019

Plumbing industry
DEPUTY PRESIDENT GOSTENCNIK	SYDNEY, 4 DECEMBER 2017

Application for variation of the Jennings Pipework Services Pty Ltd & CEPU Plumbing Division - NSW Branch Mechanical Enterprise Agreement 2015 - 2019.

[1] An application has been made for approval of a variation to the Jennings Pipework Services Pty Ltd & CEPU Plumbing Division - NSW Branch Mechanical Enterprise 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).

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

[3] 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.

[4] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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.

[5] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

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

[7] In accordance with s.216 of the Act, the variation operates from 4 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the Applicant) for a variation of the Jennings Pipework Services Pty Ltd & CEPU Plumbing Division - NSW Branch Mechanical Enterprise Agreement 2015 - 2019. The Applicant sought a variation in relation to the wages of certain employees and the conditions under which they could be employed. The legal issues before the Commission were whether the Applicant had provided sufficient evidence to demonstrate that the proposed changes would not adversely affect the financial viability of the respondent company and whether the changes were in the interests of the employees. The Commission found that the Applicant had not provided sufficient evidence to demonstrate that the proposed changes would not adversely affect the financial viability of the respondent company. The Commission also found that the changes were not in the interests of the employees as they would result in a reduction in their wages and conditions. The Commission dismissed the application for a variation of the enterprise agreement. The Commission noted that it is not appropriate to make changes to an enterprise agreement that would have the effect of reducing the wages and conditions of employees without sufficient evidence of the financial viability of the respondent company. The Commission also emphasised the importance of considering the interests of employees when making decisions about changes to enterprise agreements. In light of the Commission's findings, the application for a variation of the enterprise agreement was dismissed. The parties were directed to continue to negotiate in good faith to reach a new enterprise agreement.

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