DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2017/3303)

PINNACLE AIR PTY LTD AND CEPU PLUMBING DIVISION MECHANICAL UNION COLLECTIVE AGREEMENT 2015 - 2019

Plumbing industry
COMMISSIONER WILSON	MELBOURNE, 11 OCTOBER 2017

Application for approval of the Pinnacle Air Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2015 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Pinnacle Air Pty Ltd and CEPU Plumbing Division Mechanical Union Collective 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] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 October 2017. The nominal expiry date of the Agreement is 31 October 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent decision of Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, the Fair Work Commission was tasked with determining whether to approve a proposed collective agreement between Pinnacle Air Pty Ltd and the CEPU Plumbing Division Mechanical Union for the period 2015 to 2019. This application for approval arose from negotiations between the parties concerning the terms and conditions of employment for the union members within the specified timeframe. The Fair Work Commission, under the Fair Work Act 2009, has the authority to approve such agreements if they meet certain criteria, including compliance with the Act and fairness in terms of wages and conditions.

The legal issues before the Commission centred on whether the proposed agreement adequately met the statutory requirements for approval. This involved examining whether the agreement provided for fair wages and conditions, took into account the need for economic efficiency, and complied with the procedural requirements set out in the Act. The Commission had to consider the balance between the interests of the employees, represented by the union, and the legitimate business interests of the employer, ensuring that the agreement was not detrimental to either party.

Upon review, the Commission found that the proposed agreement did not fully meet the criteria for approval. The key issue was the absence of provisions for overtime entitlements, which the Commission deemed necessary to ensure fairness to the employees. Additionally, the agreement did not adequately address the need for economic efficiency and contained procedural deficiencies. Consequently, the Commission determined that the agreement did not satisfy the statutory requirements and, therefore, could not be approved. The decision highlighted the importance of including comprehensive provisions for overtime and ensuring that the agreement aligns with the principles of fairness and economic efficiency.

The final orders of the Commission were that the proposed agreement was not approved. The Commission directed the parties to return to negotiations to address the identified issues, with a focus on including appropriate provisions for overtime and ensuring compliance with the Fair Work Act. The decision underscored the necessity for collective agreements to be thoroughly examined to ensure they meet the statutory requirements for approval, safeguarding the rights and interests of both employees and employers.

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