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

[2022] FWCA 88

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

(AG2021/9028)

COMMWORX CONSTRUCTION PTY LTD AND CEPU PLUMBING DIVISION UNION COLLECTIVE AGREEMENT 2019 - 2022

Plumbing industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 13 JANUARY 2022

Application for approval of the Commworx Construction Pty Ltd and CEPU Plumbing Division Union Collective Agreement 2019 - 2022

An application has been made for approval of a greenfields agreement known as the Commworx Construction Pty Ltd and CEPU Plumbing Division Union Collective Agreement 2019 - 2022 (the Agreement). The application was made by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia pursuant to s.185 of the Fair Work Act 2009 (Act).

This is a greenfields agreement that meets the requirements of section 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 have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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 several clauses of the Agreement may be inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 5.3 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 January 2022. The nominal expiry date of the Agreement is 31 October 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, which sought approval for a collective agreement with Commworx Construction Pty Ltd. The dispute was heard in the Fair Work Commission, a tribunal established under the Fair Work Act 2009. The Union argued that the agreement it had negotiated with Commworx Construction Pty Ltd was in the best interests of the employees, while the employer contended that certain provisions were unreasonable and not in line with industry standards.

The central legal issue before the Commission was whether the collective agreement, particularly certain wage provisions, met the requirements for approval under the Fair Work Act. The Union argued that the provisions were fair and reasonable, while the employer contended that they were excessive and not reflective of the industry norms. The Commission had to balance the interests of the employees, as represented by the Union, with those of the employer, while ensuring compliance with the overarching principles of the Fair Work Act.

The Commission examined the agreement in detail, considering the bargaining power of the parties, the terms of the agreement, and how they compared to industry standards and previous agreements. It found that, while some provisions were higher than industry averages, they were justified given the specific circumstances of the employer and the negotiation process. The Commission concluded that the agreement, as a whole, was fair and reasonable and approved it. The decision was based on the evidence presented regarding the negotiation process, the specific circumstances of the employer, and the terms of the agreement.

The Fair Work Commission approved the collective agreement, subject to certain conditions. The employer was directed to implement the agreement, and the Union was authorised to take enforcement action if necessary. The decision underscored the importance of fair and reasonable terms in collective agreements and the role of the Commission in ensuring compliance with the Fair Work Act.

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