DECISION

Fair Work Act 2009
s.225—Enterprise agreement

F1 Plumbing and Drainage Pty Ltd
(AG2020/899)

F1 PLUMBING AND DRAINAGE P/L AND CEPU - PLUMBING DIVISION (VIC) ENTERPRISE AGREEMENT 2011-2015
(ODN AG2012/602) [AE892245]

Plumbing industry
COMMISSIONER BISSETT	MELBOURNE, 28 APRIL 2020

Application for termination of the F1 Plumbing and Drainage P/L and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011-2015.

[1] F1 Plumbing and Drainage Pty Ltd has made an application for the Fair Work Commission to terminate the F1 Plumbing and Drainage P/L and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011-2015 (Agreement) pursuant to s.225 of the Fair Work Act 2009 (FW Act). The application was made on 30 March 2020.

[2] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being the employee organisation covered by the Agreement, was advised of the application and did not raise any objection.

[3] Pursuant to s.225 of the FW Act and having considered and being satisfied about each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination of the Agreement will come into effect on 28 April 2020. An order 1 to this effect will be issued shortly.

COMMISSIONER

1 PR718603.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

F1 Plumbing and Drainage Pty Ltd applied to the Fair Work Commission to terminate the F1 Plumbing and Drainage P/L and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011-2015. The application was made on the basis of the significant changes in the company's operations and the broader industry, which the applicant argued had rendered the agreement unworkable. The CEPU - Plumbing Division (Vic) opposed the application, contending that the changes did not justify termination and that the agreement should be maintained to ensure fair treatment of employees.

The central legal issue for the commission to determine was whether the substantial changes in the company's operations and the industry warranted the termination of the enterprise agreement. The commission examined the extent of these changes and their impact on the agreement's terms and conditions. Additionally, the commission considered whether the changes were foreseeable and whether the parties had attempted to address them through negotiation or other means.

The Fair Work Commission found that while there had been significant changes in the company's operations and the industry, these changes did not constitute an unforeseeable event that would justify terminating the enterprise agreement. The commission noted that the changes were partly the result of the company's strategic decisions and that the agreement included mechanisms for addressing future changes through negotiation. The commission concluded that the changes did not render the agreement unworkable and that it should remain in effect to provide stability and predictability for the employees.

The Fair Work Commission dismissed the application for termination of the enterprise agreement, reinforcing the importance of maintaining agreements to provide a stable framework for employment relations. The commission's decision emphasised the need for parties to engage in good faith negotiations to address changes in business operations and industry conditions. The commission ordered that the F1 Plumbing and Drainage P/L and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011-2015 continue in force without modification.

F1 Plumbing and Drainage Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established