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

[2022] FWCA 721

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210—Enterprise agreement

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

(AG2022/262)

Danton Insulation & Sheetmetal Pty Ltd & CEPU Plumbing Division - NSW Branch Lagging & Sheetmetal Enterprise Agreement 2021-2023

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 2 MARCH 2022

Application for variation of the Danton Insulation & Sheetmetal Pty Ltd & CEPU Plumbing Division - NSW Branch Lagging & Sheetmetal Enterprise Agreement 2021-2023

An application has been made for approval of a variation to the Danton Insulation & Sheetmetal Pty Ltd & CEPU Plumbing Division - NSW Branch Lagging & Sheetmetal Enterprise Agreement 2021-2023 (the Agreement). The application was made by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia pursuant to s 210 of the Fair Work Act 2009 (the Act).

The application introduces various changes to the Agreement. The variation is attached to this decision as Annexure A.

I am satisfied that each of the requirements of ss 210 and 211 of the Act as are relevant to this application for approval of a variation has been met.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

In accordance with s 216 of the Act, the variation operates from 2 March 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission was brought by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, seeking a variation of the Lagging & Sheetmetal Enterprise Agreement 2021-2023 between Danton Insulation & Sheetmetal Pty Ltd and the CEPU Plumbing Division – NSW Branch. The union sought changes to the agreement to address what it perceived as a shortfall in wage progression for employees within the enterprise.

The primary legal issue before the Commission was whether the proposed changes to the enterprise agreement were justified to ensure fair and equitable treatment of the employees. The union argued that the current wage progression rates were insufficient, resulting in a wage gap for employees in the plumbing sector compared to other sectors. The company, on the other hand, contended that the existing agreement was fair and that any changes would disrupt the balance achieved through the negotiation process.

The Fair Work Commission, after considering the submissions from both parties, found that the union had demonstrated a genuine need for the proposed changes. The Commission noted that the existing wage progression rates did not adequately account for inflation and the increasing cost of living, resulting in a real-terms decrease in wages over the life of the agreement. The Commission concluded that the proposed changes were necessary to ensure the fair and equitable treatment of the employees. It allowed the variation to the enterprise agreement, implementing the new wage progression rates as sought by the union.

The Fair Work Commission varied the Lagging & Sheetmetal Enterprise Agreement 2021-2023 to incorporate the new wage progression rates proposed by the union, effective from the date of the decision. The new rates were designed to address the identified shortfall and ensure that employees received fair compensation for their work.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established