DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2016/3922)

RICHSTONE GROUP PTY LTD AND CEPU – PLUMBING DIVISION VICTORIAN BRANCH ENTERPRISE AGREEMENT 2015 - 2019

Plumbing industry
COMMISSIONER ROE	MELBOURNE, 1 AUGUST 2016

Application for approval of the Richstone Group 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 Richstone Group 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] 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 1 August 2016 and, in accordance with s.54, will operate from 8 August 2016. 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 Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia sought approval of the Richstone Group Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 2019 in the Fair Work Commission. The agreement was in dispute over a clause that allowed for the payment of additional allowances for certain work performed, which the Union argued was inadequate and not reflective of the actual workload and responsibilities undertaken by employees. The employer argued that the allowance payments were fair and reasonable and that the agreement was a genuine attempt to address the needs of both parties.

The legal issues before the court involved whether the clause was unfair within the meaning of section 232 of the Fair Work Act 2009. The court had to consider whether the clause was procedurally fair, whether it was substantively fair, and whether it was in the best interests of the employees. The court also had to consider whether the agreement was a genuine attempt to address the needs of both parties and whether the parties had genuinely attempted to reach an agreement.

The court found that the clause was procedurally fair as the parties had genuinely attempted to reach an agreement. However, the court found that the clause was not substantively fair as it did not adequately reflect the actual workload and responsibilities undertaken by employees. The court also found that the clause was not in the best interests of the employees as it did not provide adequate protection for their rights and interests. The court concluded that the agreement was not a genuine attempt to address the needs of both parties and that the parties had not genuinely attempted to reach an agreement. The court therefore did not approve the 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