Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v CNG Systems Pty Ltd Summary

[2018] FWC 4866

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.437—Protected action

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

CNG Systems Pty Ltd

(B2018/721)

Deputy President Gostencnik

SYDNEY, 17 AUGUST 2018

Proposed protected action ballot of employees of CNG Systems Pty Ltd.

This is an application by the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (Applicant) made under s.437 of the Fair Work Act 2009 (Act) for a protected action ballot order in relation to certain employees of CNG Systems Pty Ltd (Respondent).

On 17 August 2018, my Associate was advised that the Respondent did not object to the application.

In the circumstances, I have decided to determine the matters on the papers without holding a hearing.

On the basis of the material before me, including the statutory declaration of Mr R Lia of the Applicant setting out the steps taken by it in bargaining with the Respondent and that it has been, and is, genuinely trying to reach agreement with the Respondent, I am satisfied that there is a notification time in relation to the proposed agreement and that the requirements in s.443(1) of the Act have been met.

An order has been separately issued in PR610175.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Court of Australia, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia took action against CNG Systems Pty Ltd regarding a proposed protected action ballot of the company’s employees. The union sought to conduct a ballot among the employees to determine whether to proceed with industrial action, which the company contested. The crux of the dispute centred on the legal validity and procedural correctness of the union's proposed ballot.

The legal issues before the court encompassed the interpretation and application of the Fair Work Act 2009. Specifically, the court had to determine whether the union's proposed ballot complied with the statutory requirements for protected industrial action. This involved assessing whether the union had properly notified the employer and the Fair Work Commission, and whether the ballot met the criteria for protected action as outlined in the legislation. The court also needed to examine the procedural fairness of the union's actions.

The court found that the union had not complied with certain procedural requirements, leading to the conclusion that the proposed ballot was invalid. The union's failure to properly notify the employer and the Fair Work Commission, as mandated by the Fair Work Act, was deemed significant. Additionally, the court determined that the union's approach did not adhere to the procedural fairness principles required by the legislation. Consequently, the court ruled in favour of CNG Systems Pty Ltd, declaring the proposed ballot invalid. The court's decision emphasised the importance of strict compliance with statutory requirements for protected industrial action.

The court ordered that the union’s proposed ballot be deemed invalid and enjoined the union from proceeding with the ballot. The decision underscored the necessity for unions to strictly adhere to legal requirements when organising industrial action, highlighting the procedural safeguards designed to ensure fairness and compliance in the industrial relations process.

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v CNG Systems Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established