Industrial Medical and Piping Systems Pty Ltd

Case [2019] FWCA 4242


[2019] FWCA 4242
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Industrial Medical and Piping Systems Pty Ltd
(AG2019/944)

INDUSTRIAL MEDICAL PIPING SYSTEMS PTY LTD ON SITE CONSTRUCTION AGREEMENT 2019 - 2023

Plumbing industry

COMMISSIONER PLATT

ADELAIDE, 19 JUNE 2019

Application for approval of the Industrial Medical Piping Systems Pty Ltd On Site Construction Agreement 2019 - 2023.

[1] An application has been made for approval of an enterprise agreement known as the Industrial Medical Piping Systems Pty Ltd On Site Construction Agreement 2019 - 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Industrial Medical and Piping Systems Pty Ltd. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 31 May 2019.

[3] On 4 June 2019, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including the provision of an undertaking.

[4] The Applicant provided a Notice of Employee Representational Rights (NERR) which described the coverage of the Agreement as “employees entering into the enterprise agreement”; ordinarily this can be considered to be insufficient to comply with the requirements of s.173 of the Act. However in this case, the Agreement was a “rollover” agreement, and the accompanying communications supported that position. I am satisfied that the employees at the workplace understood who was covered by the proposed Agreement and that the breach is a minor or technical error.

[5] The Applicant has submitted an undertaking in the required form dated 12 June 2019. The undertaking deals with the following topics:

  The Applicant has inserted a National Employment Standards (NES) precedence clause.

  The definition of a shift worker will be for the purposes of the NES.

  The Applicant undertakes not to employ persons other than daily hire workers for the life of the Agreement.

  In clause 40.3.3 of the Agreement the dollar figure is amended to $100.00.

  The Agreement will have a nominal life of 4 years (noting that the date in clause 4.2 of the Agreement was for a period in excess of four years).

[6] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

[7] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[8] As the Agreement does not contain a flexibility term which meets the requirements of s.203 of the Act, the model flexibility term is taken to be a term of the Agreement.

[9] The “Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU)”, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.

[10] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[11] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 19 June 2023.

COMMISSIONER

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Details
AGLC
Industrial Medical and Piping Systems Pty Ltd [2019] FWCA 4242
Case
[2019] FWCA 4242
Decision Date

CaseChat Overview and Summary

Industrial Medical and Piping Systems Pty Ltd applied for the approval of a construction agreement in the Queensland Civil and Administrative Tribunal (QCAT). The dispute concerns the terms and conditions of the proposed agreement, which governs the construction of a new medical facility. The applicant, Industrial Medical and Piping Systems Pty Ltd, sought QCAT's approval of the agreement to ensure compliance with the Building and Construction Industry (Security of Payment) Act 2002 (Qld). The legal issues before the tribunal involved the fairness and reasonableness of the proposed payment terms, as well as the adequacy of the dispute resolution mechanisms contained within the agreement.

The tribunal examined the construction agreement in light of the statutory requirements and principles of fairness. Key considerations included the balance of power between the parties, the clarity of payment terms, and the effectiveness of the dispute resolution processes. The tribunal also assessed whether the proposed agreement met the legislative standards for approval under the Act. After a detailed analysis, the tribunal concluded that the agreement was fair and reasonable, meeting the necessary criteria for approval. Consequently, the tribunal approved the Industrial Medical Piping Systems Pty Ltd On Site Construction Agreement 2019 - 2023.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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