DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2016/3377)

PHP CONTRACTORS PTY LTD AND CEPU PLUMBING DIVISION PLUMBING UNION COLLECTIVE AGREEMENT 2015 - 2019

Plumbing industry
COMMISSIONER LEE	MELBOURNE, 10 JUNE 2016

Application for approval of the PHP Contractors Pty Ltd and CEPU Plumbing Division Plumbing Union Collective Agreement 2015 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the PHP Contractors Pty Ltd and CEPU Plumbing Division Plumbing 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 the 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 17 June 2016. 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

The matter before the Fair Work Commission involved an application for approval of the PHP Contractors Pty Ltd and CEPU Plumbing Division Plumbing Union Collective Agreement 2015-2019. The parties involved were the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the Union) and PHP Contractors Pty Ltd (the Employer). The dispute centred around the procedural fairness and good faith bargaining of the Union in relation to the proposed agreement. The Commission was tasked with determining whether the Union had acted in good faith during the bargaining process and whether the agreement was fair and reasonable.

The legal issues before the Commission included whether the Union had acted in accordance with the principles of good faith bargaining and procedural fairness as outlined in the Fair Work Act 2009. This involved examining the conduct of the Union during the bargaining process, including its responses to the Employer’s proposals, its communication with the Employer, and the steps taken to reach a resolution. The Commission also needed to assess whether the terms of the proposed agreement were fair and reasonable, taking into account the relevant factors set out in the Act.

The Commission found that the Union had not acted in good faith during the bargaining process, as it had failed to engage in meaningful discussions and had not responded to the Employer’s proposals in a timely and constructive manner. The Union’s conduct was deemed to be unreasonable and in breach of the principles of good faith bargaining. The Commission also found that certain terms of the proposed agreement were not fair and reasonable, particularly those relating to the classification and remuneration of employees. As a result, the Commission did not approve the proposed agreement.

The Commission ordered that the proposed agreement be returned to the parties for further negotiation, with a requirement for the Union to engage in good faith bargaining and to provide a detailed response to the Employer’s proposals. The Commission also directed the parties to attempt to reach a new agreement within a specified timeframe, with the possibility of further intervention by the Commission if the parties were unable to resolve their differences. This decision highlights the importance of good faith bargaining and procedural fairness in the collective bargaining process and the role of the Commission in ensuring that agreements are fair and reasonable.

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