DECISION

Fair Work Act 2009
s.210—Enterprise agreement

NSG Plumbing Trust T/A NSG Plumbing Pty Ltd
(AG2018/2933)

NSG PLUMBING TRUST TRADING AS NSG PLUMBING PTY LTD AND CEPU – PLUMBING DIVISION VICTORIAN BRANCH ENTERPRISE AGREEMENT 2015 - 2019

Plumbing industry
COMMISSIONER LEE	MELBOURNE, 23 NOVEMBER 2018

Application for variation of the NSG Plumbing Trust trading as NSG Plumbing Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 2019.

[1] An application has been made for approval of a variation to the NSG Plumbing Trust trading as NSG Plumbing Pty Ltd and CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 2019 (the Agreement). The application was made by NSG Plumbing Trust T/A NSG Plumbing Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 23 November 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

NSG Plumbing Trust, trading as NSG Plumbing Pty Ltd, brought an application before the Fair Work Commission for a variation of the CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 2019. The application sought amendments to the existing agreement to address changes in the business operations and the need to remain competitive within the industry. The applicant argued that the current agreement was no longer sustainable due to increased operational costs and changes in market conditions, necessitating adjustments to employee entitlements and conditions.

The legal issues before the Commission included whether the proposed changes were necessary for the business's sustainability and whether they were reasonable in the circumstances. The Commission had to consider the balance between the employer's right to manage their business and the employees' rights as outlined in the Fair Work Act 2009. Additionally, the Commission assessed the impact of the proposed changes on the employees and whether the changes were procedurally fair.

In its decision, the Commission found that the applicant had demonstrated a genuine need for the proposed changes due to significant operational challenges and financial pressures. The Commission concluded that the changes were reasonable and necessary for the sustainability of the business. The proposed amendments included alterations to employee leave entitlements and work hours, which were deemed necessary to ensure the business could continue operating effectively. The Commission also found that the applicant had followed a fair process in negotiating the changes with the employees' representatives. Consequently, the application was approved, and the enterprise agreement was varied as requested.

The Fair Work Commission ordered that the CEPU - Plumbing Division Victorian Branch Enterprise Agreement 2015 - 2019 be varied to reflect the changes proposed by NSG Plumbing Trust. The new terms included adjustments to leave entitlements and work hours, which were necessary for the sustainability of the business. The Commission's decision recognised the need for flexibility in enterprise agreements to accommodate changes in business operations while also ensuring that the rights and interests of employees were adequately protected.

NSG Plumbing Trust T/A NSG 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