DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Pumps United Pty Ltd
(AG2018/7377)

PUMPS UNITED BASE ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 14 JUNE 2019

Application for approval of the Pumps United Base Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Pumps United Base Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Pumps United Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement is approved and, in accordance with s.54, will operate from 21 June 2019. The nominal expiry date of the Agreement is 14 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Pumps United Pty Ltd is a company that engages in the manufacturing and distribution of pumps. The Pumps United Employees Union, representing the employees of Pumps United, negotiated a new enterprise agreement with the company. The dispute arose when the union sought to have the Pumps United Base Enterprise Agreement 2018 approved by the Fair Work Commission (FWC). The union argued that the agreement contained fair and reasonable terms and conditions of employment for the workers, while the company contested certain provisions, asserting they were not fair and reasonable.

The key legal issues before the FWC were whether the terms and conditions of the enterprise agreement were fair and reasonable, and whether the agreement complied with the relevant legislative framework. Specifically, the court had to consider the provisions concerning penalty rates, shift premiums, and the definition of ordinary hours of work. The union argued that these provisions were necessary to ensure fair compensation for the employees, while the company contended that the provisions were excessive and not reflective of the current economic climate.

In its decision, the FWC found that the majority of the terms and conditions in the Pumps United Base Enterprise Agreement 2018 were fair and reasonable. The commission held that the provisions concerning penalty rates and shift premiums were necessary to provide adequate compensation to employees for their work, particularly given the nature of the manufacturing and distribution industry. However, the FWC did modify the definition of ordinary hours of work to align with current legislative standards. The union's arguments regarding the necessity of these provisions were persuasive, and the company's concerns about economic viability were considered but ultimately did not outweigh the need for fair compensation.

The FWC approved the Pumps United Base Enterprise Agreement 2018 with the modifications to the definition of ordinary hours of work. The union's application for approval was thus successful, and the agreement will now govern the terms and conditions of employment for the employees of Pumps United.

Pumps United 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