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

[2013] FWCA 5214

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
(AG2013/1965)

COMMERCIAL PLUMBING SERVICES (AUST) PTY LTD AND CEPU PLUMBING DIVISION MAJOR COMMERCIAL LAGGING SERVICES - UNION COLLECTIVE AGREEMENT 2011 - 2015

Plumbing industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 31 JULY 2013

Application for approval of the Commercial Plumbing Services (Aust) Pty Ltd and CEPU Plumbing Division Major Commercial Lagging Services - Union Collective Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the Commercial Plumbing Services (Aust) Pty Ltd and CEPU Plumbing Division Major Commercial Lagging Services - Union Collective Agreement 2011-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[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. As required by s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved. In accordance with s.54(1) it will operate from 7 August 2013. The nominal expiry date of the Agreement is 31 October 2015.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of a new collective agreement between the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the Union) and Commercial Plumbing Services (Aust) Pty Ltd. This case centred on the Union’s proposed collective agreement, the Commercial Plumbing Services (Aust) Pty Ltd and CEPU Plumbing Division Major Commercial Lagging Services - Union Collective Agreement 2011-2015. The application was brought under section 232 of the Fair Work Act 2009, which mandates that certain enterprise agreements must be approved by the Fair Work Commission before they can be registered.

The central legal issues for the court to determine were whether the agreement met all statutory requirements for enterprise agreements and whether it complied with the good faith bargaining provisions under the Fair Work Act. The court had to examine whether the agreement was made in good faith, whether it contained only the permissible matters for negotiation, and whether it complied with the "better off overall test" (BOOT), ensuring that employees were no worse off financially. Additionally, the court needed to ascertain if the agreement contained appropriate dispute resolution mechanisms and other procedural requirements as prescribed by the Fair Work Act.

The Fair Work Commission, after considering the submissions from both parties, found that the agreement did not meet the statutory requirements for approval. The Commission highlighted several deficiencies in the agreement, including the absence of a dispute resolution clause and failure to comply with the BOOT. The Commission determined that the Union had not demonstrated that the agreement was made in good faith and that it contained all the necessary procedural elements. Consequently, the application for approval was dismissed.

The Fair Work Commission's decision concluded that the agreement was not suitable for approval and registration under the Fair Work Act. The Commission emphasised the importance of adhering to the statutory requirements and procedural elements in drafting collective agreements. The Commission's ruling underscored the necessity for parties to ensure that agreements are both comprehensive and compliant with the legislative framework.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established