DECISION

Fair Work Act 2009
s.185—Enterprise agreement

O P Industries Pty Ltd
(AG2019/2664)

O.P. INDUSTRIES PTY LTD PLUMBING MECHANICAL SERVICES ON SITE ENTERPRISE AGREEMENT 2019 - 2022

Plumbing industry
COMMISSIONER PLATT	ADELAIDE, 8 AUGUST 2019

Application for approval of the O.P. Industries Pty Ltd Plumbing Mechanical Services On Site Enterprise Agreement 2019 - 2022.

[1] An application has been made for approval of an enterprise agreement known as the O.P. Industries Pty Ltd Plumbing Mechanical Services On Site Enterprise Agreement 2019 - 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by O P Industries Pty Ltd. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 1 August 2019.

[3] On 7 August 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 has submitted an undertaking in the required form dated 7 August 2019. The undertaking deals with the following topics:

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

• The Applicant gives assurance that part time employees will be entitled to notice of termination in accordance with the NES.

• The Applicant gives assurance that casual employees will be entitled to leave in accordance with the NES.

• The Applicant gives assurance that annual leave accrues in accordance with the NES.

• Clause 40.1.3 of the Agreement shall not apply.

• Clause 40.2.4 is renumbered ‘40.1.3’.

• The Applicant provides a replacement clause in relation to the rate of pay for adult apprentices.

[5] 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 supported the undertaking.

[6] 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.

[7] 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.

[8] 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.

[9] 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 20 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

O P Industries Pty Ltd is the subject of an application for the approval of an enterprise agreement, specifically the O.P. Industries Pty Ltd Plumbing Mechanical Services On Site Enterprise Agreement 2019 - 2022. The dispute arose in the Fair Work Commission, with the applicant, O P Industries Pty Ltd, seeking approval of the agreement under the Fair Work Act 2009. The legal issues before the Commission included whether the agreement was in the best interests of the employees and whether it complied with the provisions of the Act.

The Commission had to determine if the agreement met the "better off overall test" (BOOT), which requires that employees be no worse off financially and at least some employees be better off financially compared to the applicable award or safety net. The applicant argued that the proposed agreement provided better terms and conditions for employees compared to the existing award, and that it was in the best interests of the employees. The Commission also had to consider whether the agreement was made in good faith and without coercion.

In its decision, the Commission found that the proposed agreement did indeed meet the BOOT. The Commission was satisfied that the agreement provided better terms and conditions for employees, including increased wages and improved working conditions. The Commission also found that the agreement was made in good faith and without coercion. Therefore, the Commission approved the O.P. Industries Pty Ltd Plumbing Mechanical Services On Site Enterprise Agreement 2019 - 2022. The approval was granted on the condition that the agreement would come into effect from the date of the decision and would be registered with the Commission.

O P Industries 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