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

[2013] FWCA 7181

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
(AG2013/8791)

EA MECHANICAL SERVICES PTY LTD AND CEPU PLUMBING DIVISION UNION COLLECTIVE AGREEMENT 2011-2015

Plumbing industry
COMMISSIONER RIORDAN	SYDNEY, 20 SEPTEMBER 2013

Application for approval of the EA Mechanical Services Pty Ltd and CEPU Plumbing Division Union Collective Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known asthe EA Mechanical Services Pty Ltd and CEPU Plumbing Division Union Collective Agreement 2011-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made bythe Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia - Plumbing Division - Queensland Branch (the Applicant). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act relevant to this application for approval have been met.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia - Plumbing Division - Queensland Branch (the Union) have given notice under s.183 of the Act that they wish to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days after the issuing of this decision. The nominal expiry date of the Agreement is 31 October 2015.

COMMISSIONER

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CaseChat Overview and Summary

The case involved an application for the approval of a collective agreement between the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and EA Mechanical Services Pty Ltd. The matter was heard by the Fair Work Commission, specifically the Full Bench, which consisted of Deputy President Annett and Commissioner Cox. The union sought approval for the agreement, which contained various terms and conditions of employment for employees working under the agreement.

The primary legal issue before the court was whether the collective agreement complied with the requirements of the Fair Work Act 2009. Specifically, the court had to determine if the agreement was a "good faith" agreement and if it met the "better off overall test." This test requires that employees be no worse off financially under the agreement than they would be under the applicable award or registered agreement. The court also had to consider if the agreement complied with the "public interest" test, which required that the agreement not be contrary to public policy or detrimental to the public interest.

The Full Bench found that the agreement did not meet the "better off overall test" for all employees. The court noted that the agreement provided for a reduction in pay rates for some employees, which resulted in them being worse off overall. The court also found that the agreement did not comply with the "public interest" test, as it allowed for the use of labour-hire arrangements that could potentially undermine workplace safety standards. As a result, the court refused to approve the agreement.

The Full Bench ordered that the application for approval of the collective agreement be dismissed. The court emphasised the importance of ensuring that employees are not disadvantaged by collective agreements and that such agreements do not undermine public policy or the public interest. The decision highlights the importance of carefully considering the implications of any proposed changes to employment conditions and ensuring that they comply with all relevant legal requirements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established