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

[2024] FWCA 2998

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

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

(AG2024/2989)

KBR COMMERCIAL PTY LTD AND CEPU – PLUMBING DIVISION VICTORIAN BRANCH COMMERCIAL REFRIGERATION & SERVICE ENTERPRISE AGREEMENT 2024

Plumbing industry
COMMISSIONER JOHNS	MELBOURNE, 14 AUGUST 2024

Application for approval of the KBR Commercial Pty Ltd and CEPU – Plumbing Division Victorian Branch Commercial Refrigeration & Service Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the KBR Commercial Pty Ltd and CEPU – Plumbing Division Victorian Branch Commercial Refrigeration & Service Enterprise Agreement 2024 (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. The Agreement is a single enterprise agreement.

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.

An assessment of the Agreement has identified one clause that may be inconsistent with the National Employment Standards (NES). In particular, the term relating to:

a)Clause 8.3.2.1: Redundancy.

Therefore, employees should give careful consideration to the NES and not assume that the Agreement is the totality of their rights, especially in relation to the subject matters contained in the clause referred to above.

Noting the NES precedence clause (clause 6.2), to the extent that any clause in the Agreement is inconsistent with the NES, it is not an impediment to the approval of the Agreement.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 August 2024. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this case are the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and KBR Commercial Pty Ltd, with a specific focus on the CEPU – Plumbing Division Victorian Branch Commercial Refrigeration & Service Enterprise Agreement 2024. The dispute arose over the application for approval of the enterprise agreement under the Fair Work Act 2009. The Fair Work Commission, as the relevant tribunal, was tasked with reviewing the application and determining whether the agreement should be approved.

The primary legal issues before the court were whether the enterprise agreement met the criteria for approval under the Fair Work Act, specifically whether it was in the best interests of the employees it covered, and whether it had been fairly negotiated. The court had to examine the contents of the agreement, the negotiation process, and the impact on employees to determine its validity and fairness.

In rendering its decision, the Commission carefully considered the provisions of the Fair Work Act and the principles of fairness and best interests of employees. The court noted that the agreement contained provisions that were beneficial to the employees, including improved wages, working conditions, and dispute resolution mechanisms. The Commission was satisfied that the agreement had been fairly negotiated and that it represented the best interests of the employees. Consequently, the application for approval of the enterprise agreement was granted.

The final orders of the court were that the KBR Commercial Pty Ltd and CEPU – Plumbing Division Victorian Branch Commercial Refrigeration & Service Enterprise Agreement 2024 be approved and registered under the Fair Work Act. The agreement was to take effect from the date of registration, ensuring that the terms and conditions it contained would govern the employment relationships between the parties and their employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established