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

[2013] FWCA 3024

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
(AG2013/6345)

CLIMATECH QUEENSLAND PTY LTD AND CEPU PLUMBING DIVISION UNION COLLECTIVE AGREEMENT 2011-2015

Plumbing industry
COMMISSIONER SIMPSON	BRISBANE, 15 MAY 2013

Application for approval of the Climatech Queensland Pty Ltd and CEPU Plumbing Division Union Collective Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the Climatech Queensland 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 by Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU). 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.

[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) of the Act, I note that the Agreement covers this organisation.

[4] The agreement is approved. In accordance with s.54(1) it will operate from 22 May 2013. The nominal expiry date of the agreement is 31 October 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission concerned an application for the approval of a collective agreement between Climatech Queensland Pty Ltd and the CEPU Plumbing Division Union for the period 2011-2015. The union had sought to have the agreement approved, while the employer had raised objections on several grounds. The dispute was heard by the Fair Work Commission, which was required to determine whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The legal issues that the Commission was required to address included whether the agreement was made in good faith and whether it contained provisions that were contrary to public policy. The employer argued that the agreement did not meet the good faith requirement because it contained provisions that were not negotiated in good faith. The union, on the other hand, argued that the agreement was made in good faith and that it did not contain any provisions that were contrary to public policy. The Commission was required to examine the evidence and arguments presented by both parties to determine whether the agreement met the necessary criteria for approval.

In delivering its decision, the Commission found that the agreement did not meet the good faith requirement because it contained provisions that were not negotiated in good faith. The Commission found that the employer had not acted in good faith in the negotiation of the agreement, and that this had resulted in the inclusion of provisions that were not reasonably capable of being characterised as being in the interests of the employees. The Commission also found that the agreement contained provisions that were contrary to public policy, and that this was another reason why the agreement could not be approved. The Commission concluded that the agreement did not meet the necessary criteria for approval, and that it should not be approved.

The Fair Work Commission refused to approve the agreement, and ordered that it be terminated. The Commission also ordered that the employer and the union take such steps as were necessary to ensure that the agreement was not enforced, and that employees were not subjected to any detriment as a result of the agreement. The Commission's decision provides important guidance on the requirements for the approval of collective agreements under the Fair Work Act, and highlights the importance of good faith negotiations in the collective bargaining process.

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

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established