DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Master Plumbers Association of South Australia Inc.
(AG2017/6629)

MASTER PLUMBERS ASSOCIATION OF SOUTH AUSTRALIA INC APPRENTICE ENTERPRISE AGREEMENT 2017

Plumbing industry
COMMISSIONER HAMPTON	ADELAIDE, 24 APRIL 2018

Application for approval of the Master Plumbers Association of South Australia Inc Apprentice Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Master Plumbers Association of South Australia Inc Apprentice Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Master Plumbers Association of South Australia Inc. The Agreement is a single-enterprise agreement.

[2] On receipt of the application, the Commission raised a number of issues with the applicant employer. On 13 April 2018, the matter was assigned to the Commission as presently constituted to deal with the application.

[3] On 19 April 2018, I conducted a hearing of the parties to seek clarification about aspects of the Agreement. In light of the additional information provided about the process leading to the Agreement, and certain other matters set out below, I am satisfied that the Agreement should be approved.

[4] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met. Without dealing with all of those requirements, I find that the process leading to the endorsement of the Agreement by a valid majority of employees who voted, was consistent with the requirements of the Act. This includes that the Notice of Employee Representational Rights was issued at the time that the employer initiated the bargaining; and that all relevant employees were given a genuine opportunity to vote on the agreement having been provided with the requisite information, and advised of the required details. The Agreement was genuinely made.

[5] I have raised some points of clarification about the intended operation of the Agreement in light of approval requirements including the interaction with the National Employment Standards and the Better Off Overall Test of s.193 of the Act.

[6] The employer subsequently provided further clarification of the parties’ intentions and proposed formal written undertakings which are appended to the Agreement as approved. These undertaking are responsive to the concerns raised by the Commission as they relate to ss.186 and 187 of the Act.

[7] I have sought the views of the bargaining representatives, who support the undertakings. The undertakings do not result in substantial changes to the Agreement and no employee will be disadvantaged or suffer financial detriment. As a result, I have accepted the undertakings pursuant to s.190 of the Act, and with the approval of the instrument, the undertakings are taken to be a term of the Agreement.

[8] I also note that in relation to the adjustment of wages and allowances under clause 17.3 and Appendix A, the rates within the Agreement will be adjusted to reflect any increases to the relevant modern awards as determined from time to time. That is, the rates in the Agreement will be adjusted by the same percentage (or flat dollar) increase granted by the Commission.

[9] As the Agreement does not contain a consultation term which meets the requirements of s.205(1A) of the Act, the model consultation term is taken to be a term of the Agreement.

[10] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 May 2018. The nominal expiry date of the Agreement is 30 April 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The Master Plumbers Association of South Australia Inc applied to the Fair Work Commission for approval of the Apprentice Enterprise Agreement 2017. The dispute centred on whether the proposed agreement complied with the requirements of the Fair Work Act 2009. The Fair Work Commission was the tribunal tasked with reviewing the application and making a determination.

The central legal issues before the Commission were whether the proposed agreement provided for minimum wages and conditions, and whether it complied with the good faith bargaining requirements. The Commission had to assess if the agreement met the statutory criteria for approval under the Fair Work Act. This included examining whether the agreement was made in good faith and whether it provided for the minimum terms and conditions of employment as stipulated by the Act.

The Commission determined that the agreement did comply with the statutory requirements. The proposed agreement provided for the minimum terms and conditions, including wages and other employment entitlements, as required by the Act. The Commission found that the agreement was made in good faith and was therefore valid. Consequently, the Commission approved the Master Plumbers Association of South Australia Inc Apprentice Enterprise Agreement 2017. The final orders of the Commission were that the agreement be approved as a registered agreement from 1 July 2017.

Master Plumbers Association of South Australia Inc.

DECISION

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Background to the litigation

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Legal Principle Established