Precision Plumbing (WA) Pty Ltd

[2014] FWCA 1544

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Precision Plumbing (WA) Pty Ltd
(AG2014/412)

PRECISION PLUMBING (WA) PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 5 MARCH 2014

Application for approval of the Precision Plumbing (WA) Pty Ltd Roy Hill AWU Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Precision Plumbing (WA) Pty Ltd Roy Hill AWU Greenfields Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is three and a half years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Precision Plumbing (WA) Pty Ltd applied to the Fair Work Commission for approval of the Precision Plumbing (WA) Pty Ltd Roy Hill AWU Greenfields Agreement 2014. The agreement was a certified agreement between Precision Plumbing (WA) Pty Ltd and the Australian Workers' Union. The dispute centred on whether the agreement was a "single-employer agreement" as defined in the Fair Work Act 2009. If it was, the agreement would require approval by the Commission.

The central legal issue before the Commission was whether the agreement was a single-employer agreement, given that Precision Plumbing (WA) Pty Ltd was a subsidiary of Precision Plumbing Group Pty Ltd, which itself was a subsidiary of a larger group of companies. The Commission had to determine whether Precision Plumbing (WA) Pty Ltd was a single employer for the purposes of the agreement, or whether the group structure meant that there were multiple employers. The outcome hinged on the interpretation of the term "employer" and the application of relevant sections of the Fair Work Act.

The Commission held that Precision Plumbing (WA) Pty Ltd was a single employer for the purposes of the agreement. It found that the company operated independently from its parent company and had its own distinct corporate structure, management, and workforce. The Commission emphasised that the agreement was made with the Australian Workers' Union, and not with any other entity in the group. The Commission concluded that the agreement was a single-employer agreement and therefore required its approval. The application for approval was subsequently granted.

The Commission approved the Precision Plumbing (WA) Pty Ltd Roy Hill AWU Greenfields Agreement 2014. The approval was subject to the terms and conditions outlined in the agreement, including the provisions relating to wages, hours of work, and other employment conditions. The decision confirmed the status of Precision Plumbing (WA) Pty Ltd as a single employer for the purposes of the agreement, and provided clarity on the application of the Fair Work Act in this context.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established