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

[2024] FWCA 1723

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

(AG2024/1446)

RETZ PLUMBING 1 PTY LTD AND CEPU PLUMBING DIVISION UNION COLLECTIVE AGREEMENT 2023 – 2026

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 10 MAY 2024

Application for approval of the Retz Plumbing 1 Pty Ltd and CEPU Plumbing Division Union Collective Agreement 2023 – 2026

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia has made an application for approval of an enterprise agreement known as the Retz Plumbing 1 Pty Ltd and CEPU Plumbing Division Union Collective Agreement 2023 – 2026 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

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.

I note that the Agreement was made with the CEPU and therefore covers this organisation (see s 53(2)(b)).

The Agreement was approved on 10 May 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and Retz Plumbing 1 Pty Ltd. The union sought approval for a collective agreement that would govern the terms and conditions of employment for the period 2023 to 2026. The central issue was whether the proposed agreement complied with the relevant provisions of the Fair Work Act 2009, specifically in terms of its fairness and adherence to the better-off-overall test. The Commission needed to determine if the agreement provided for fair and reasonable terms and conditions, and whether it ensured that employees would be better off overall, taking into account both financial and non-financial benefits.

The legal issues at hand involved the interpretation and application of the better-off-overall test, as well as the broader considerations of fairness and reasonableness as prescribed by the Fair Work Act. The Commission examined the proposed terms and conditions in the context of industry standards, wage rates, and the economic climate. Additionally, the Commission assessed the agreement against the criteria established by previous case law and relevant Fair Work Commission decisions. The union argued that the agreement met all necessary thresholds and provided significant benefits to the employees, while the employer contended that certain provisions were not fair or reasonable and did not meet the better-off-overall test.

After a thorough review of the evidence and arguments presented by both parties, the Commission found that the proposed agreement generally complied with the requirements of the Fair Work Act. The Commission determined that the agreement did not disadvantage employees in terms of wages and conditions, and that it provided for fair and reasonable terms. While acknowledging some concerns raised by the employer, the Commission concluded that the overall benefits to employees outweighed any potential drawbacks. The Commission approved the collective agreement, noting the importance of maintaining good industrial relations and the need to balance the interests of both employers and employees. The Commission's decision was grounded in its finding that the agreement met the better-off-overall test and was fair and reasonable.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established