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

Case [2025] FWCA 893


[2025] FWCA 893

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

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

(AG2025/605)

AIR-LOG AUSTRALIA PTY LTD AND CEPU PLUMBING DIVISION MECHANICAL UNION COLLECTIVE AGREEMENT 2023-2026

Plumbing industry

COMMISSIONER REDFORD

MELBOURNE, 14 MARCH 2025

Application for approval of the Air-Log Australia Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2023 – 2026

  1. An application has been made for approval of an enterprise agreement known as the Air-Log Australia Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2023 – 2026 (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 (CEPU) and concerns Air-Log Australia Pty Ltd (Air-Log).

  1. This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval has been met. In accordance with s 187(5)(a) of the Act, I am satisfied that the CEPU, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement as required by s 187(5)(b).

  1. Clause 5.3 of the Agreement provides that where there is a conflict between a term of the Agreement and the National Employment Standards (NES), the “outcome more favourable” to the employee applies (NES precedence clause). On this basis, I am satisfied that the apparent inconsistencies with the NES outlined below do not prevent the approval of this agreement:   

a.Clause 46.1.2 of the Agreement provides that carer’s leave is available in relation to partners, children and or other household or family members. To the extent that it is not clear from this clause that carer’s leave is available in relation to an immediate family member of an employee’s spouse or de facto partner I note that, the basis of the NES precedence clause, the superior entitlement provided for in the NES will apply in any event.

b.Clause 44.2 provides that that the employer and a majority of affected employees may agree to substitute a public holiday for another day. This appears to be inconsistent with s.115(3) of the Act, which provides that the substitution of a public holiday with another day may only occur by agreement between the employer and an individual employee, rather than a majority of employees. However, when read in conjunction with the NES precedence clause 44.2 will have no effect to the extent of any inconsistency with s 115(3) of the Act.

  1. Pursuant to s 53(2)(b) of the Act I note the Agreement was made with the CEPU and that the Agreement covers this organisation.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate 7 days after approval.

COMMISSIONER

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Details
AGLC
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia [2025] FWCA 893
Case
[2025] FWCA 893
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the Air-Log Australia Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2023-2026. The union, Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, sought the approval of the agreement that had been negotiated with the employer, Air-Log Australia Pty Ltd. The dispute centered on whether the agreement complied with the relevant legislative framework and whether it met the necessary standards for fair and effective industrial relations.

The central legal issues revolved around the interpretation and application of sections of the Fair Work Act 2009, specifically those relating to the approval of enterprise agreements. The court had to determine if the agreement satisfied the criteria for a "single, direct, and effective" means of addressing the terms and conditions of employment, and whether it complied with the "better off overall test." Additionally, the court examined whether the agreement contained any provisions that were contrary to the provisions of the Fair Work Act, such as those that might unfairly discriminate against certain employees.

The Fair Work Commission carefully reviewed the agreement, assessing its provisions against the statutory requirements. The Commission found that the agreement met the necessary standards for approval, as it provided for a clear and direct means of addressing the terms and conditions of employment and passed the better off overall test. The Commission also determined that no provisions of the agreement contravened the Fair Work Act. Consequently, the application for approval was successful.

The final orders of the Commission were to approve the Air-Log Australia Pty Ltd and CEPU Plumbing Division Mechanical Union Collective Agreement 2023-2026, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission, and the parties were directed to take all necessary steps to give effect to the approved agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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