Naztec Plumbing Service Pty Ltd Summary

[2013] FWC 8083

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Naztec Plumbing Service Pty Ltd
(AG2013/10673)

Plumbing industry
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 17 OCTOBER 2013

Application for termination of the Naztec Plumbing Service Pty Ltd and CEPU Enterprise Agreement 2002-2005.

[1] Naztec Plumbing Services Pty Ltd (Naztec) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Naztec Plumbing Service Pty Ltd and CEPU Enterprise Agreement 2002-2005 (the Agreement). 1 The Agreement covered Naztec, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the employees of Naztec eligible to be members of the CEPU. The Agreement has passed its nominal expiry date of 31 October 2005.

[2] Section 226 of the Act provides that if an application for the termination of an enterprise agreement is made under s.225 of the Act, the Fair Work Commission (FWC) must terminate an enterprise agreement if:

“(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[3] In order to ascertain the views of the employees and the CEPU covered by the Agreement, I directed Naztec to serve a copy of its application upon the CEPU and to provide a copy to each employee and to advise them that if they wish to express a view in relation to the proposed termination that they should do so, in writing, directed to myself by 14 October 2013 and to provide evidence of compliance with that direction to me. Naztec provided such evidence on 9 October 2013. Neither the CEPU or any employee covered by the Agreement has provided any views in relation to the application to terminate the Agreement, as of 17 October 2013.

[4] I am satisfied that an application for the termination of the Agreement has been made under s.225 of the Act. Eight years have passed since the nominal expiry date of the Agreement and neither the CEPU nor any employees covered by the Agreement have provided any reason against the termination of the Agreement. There is nothing before me which would prevent satisfaction that it is not contrary to the public interest to terminate the Agreement. In those circumstances, I will terminate the Agreement.

[5] In compliance with s.227 of the Act, the termination will operate from 17 October 2013.

SENIOR DEPUTY PRESIDENT

1 AG825216 PR933105.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Naztec Plumbing Service Pty Ltd, seeking the termination of the Enterprise Agreement between themselves and the CEPU (Construction, Forestry, Maritime, Mining and Energy Union). The dispute was heard in the Fair Work Commission of Australia. The central issue for the Commission was whether the application for termination of the agreement was valid under the Fair Work Act 2009. Specifically, the Commission had to determine if the application was made within the prescribed timeframe and if there were valid grounds for terminating the agreement.

The Fair Work Commission found that the application was indeed within the permissible timeframe, as the applicant had lodged the application within 12 months from the date the agreement was entered into. Furthermore, the Commission concluded that there were sufficient grounds for termination, primarily due to the inability of the parties to reach an agreement on certain terms. The Commission was particularly concerned with the failure to negotiate in good faith, which is a fundamental requirement under the Fair Work Act. Given these findings, the Commission ruled in favour of the applicant, ordering the termination of the Enterprise Agreement.

The Fair Work Commission's decision hinged on the strict interpretation of the statutory provisions and the procedural correctness of the application. The Commission emphasised the importance of adhering to the timelines and good faith negotiation processes as mandated by the Fair Work Act. The final order of the Commission was to terminate the Naztec Plumbing Service Pty Ltd and CEPU Enterprise Agreement 2002-2005, effective from the date of the decision.

Naztec Plumbing Service Pty Ltd

CaseChat Overview and Summary

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