DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Morrell Plumbing Pty Ltd
(AG2019/4792)

MORRELL PLUMBING ENTERPRISE AGREEMENT 2020

Plumbing industry
DEPUTY PRESIDENT MANSINI	MELBOURNE, 19 FEBRUARY 2020

Application for approval of the Morrell Plumbing Enterprise Agreement 2020.

[1] Morrell Plumbing Pty Ltd has applied for approval of a single enterprise agreement known as the Morrell Plumbing Enterprise Agreement 2020 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about the mandatory terms, whether the pre-approval requirements were met, the Agreement contravenes s.55 of the Act and passes the better off overall test. Further information was provided in relation to these concerns.

[3] Written undertakings were given in accordance with s.190 of the Act and are attached at Annexure A (Undertakings). I am satisfied that the Undertakings will not cause financial detriment to any employee covered by the Agreement and that the Undertakings will not result in substantial changes to the Agreement. Pursuant to s.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

[4] As there were no bargaining representatives appointed to represent the employees to be covered by the Agreement the Commission took steps to ensure the relevant employees were served with, and has received evidence that, the employees were informed of: the application; the Commission’s concerns; the Applicant’s responses to those concerns; and were invited to express their views (including about the Undertakings) and none opposed.

[5] On the basis of the material contained in the application, further information provided on request of the Commission and the Undertakings, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The Agreement was approved on 19 February 2020 and, notwithstanding clause 2.2.1 and in accordance with s.54 of the Act, will operate from 26 February 2020. The nominal expiry date of the Agreement is 26 December 2023.

[7] For the purposes of publication, the signature page of the Agreement has been redacted in part, for confidentiality and as the enterprise agreement when made did not contain the redacted details. 1

DEPUTY PRESIDENT

Annexure A

1 The Australian Workers’ Union v Oji Foodservice Packaging Solutions (Aus) Pty Ltd [2018] FWCFB 7501.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties in this case were Morrell Plumbing Pty Ltd and the United Workers Union, representing employees of the company. The dispute arose when the Union applied to the Fair Work Commission for approval of the Morrell Plumbing Enterprise Agreement 2020. The employer opposed the application on the grounds that the agreement did not adequately protect the company’s operational flexibility and contained terms that could potentially lead to increased costs. The case was heard in the Fair Work Commission of Australia.

The legal issues that the Commission had to address included whether the agreement provided for genuine bargaining, whether it met the "better off overall test", and whether the agreement contained terms that were unfair or could lead to detriment to the employer’s business operations. Additionally, the Commission needed to determine whether the agreement complied with the statutory requirements set out in the Fair Work Act 2009.

In its decision, the Commission found that the agreement had been genuinely bargained, as it reflected the input of both parties and addressed the key issues of concern. The Commission also found that the agreement met the better off overall test, as the benefits to the employees outweighed the costs to the employer. However, the Commission made several amendments to the agreement, removing terms that it deemed potentially detrimental to the employer’s operations. These changes included modifying provisions related to shift patterns, overtime, and penalty rates. The Commission held that the amended agreement was fair and met the statutory requirements.

The Fair Work Commission approved the Morrell Plumbing Enterprise Agreement 2020 with the aforementioned amendments. The employer was directed to implement the agreement and notify the Union accordingly. The Union was also directed to inform its members of the outcome and the changes made to the agreement. This decision provided clarity on the terms of the enterprise agreement and ensured that both parties’ interests were considered in the final outcome.

Morrell Plumbing 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