R.E. McMahon Pty Ltd

[2024] FWCA 1549

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

R.E. McMahon Pty Ltd

(AG2024/1261)

R.E. MCMAHON PTY LTD PLUMBERS & TRADES ASSISTANTS ENTERPRISE AGREEMENT 2024 - 2027

Plumbing industry
COMMISSIONER JOHNS	MELBOURNE, 29 APRIL 2024

Application for approval of the R.E. McMahon Pty Ltd Plumbers & Trades Assistants Enterprise Agreement 2024 - 2027

An application has been made for approval of an enterprise agreement known as the R.E. McMahon Pty Ltd Plumbers & Trades Assistants Enterprise Agreement 2024 - 2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by R.E. McMahon Pty Ltd. The Agreement is a single enterprise agreement.

An assessment of the Agreement has identified four clauses that may be inconsistent with the National Employment Standards (NES). In particular, the terms relating to:

a)Clause 24: abandonment of employment;
b)Clause 28.3: termination of employment;
c)Clause 28.4: monies owed at termination; and
d)Clause 50.3: personal leave notice.

Therefore, employees should give careful consideration to the NES and not assume that the Agreement is the totality of their rights, especially in relation to the subject matters contained in the clauses referred to above.

Noting the NES precedence clause (clause 8), to the extent that any clause in the Agreement is inconsistent with the NES, it is not an impediment to the approval of the Agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 May 2024. The nominal expiry date of the Agreement is 28 April 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of R.E. McMahon Pty Ltd, the Fair Work Commission was asked to consider the approval of the R.E. McMahon Pty Ltd Plumbers & Trades Assistants Enterprise Agreement 2024 - 2027. The application for approval was made by R.E. McMahon Pty Ltd, while the Australian Council of Trade Unions and the Plumbers and Gas Fitters Union were involved as interested parties.

The primary legal issues before the Commission were whether the enterprise agreement complied with the relevant statutory requirements, including fairness, and whether it met the standards of good faith bargaining and public policy considerations. Additionally, the Commission had to assess the agreement's alignment with the national minimum terms and conditions, as well as its potential impact on the employees' rights and workplace relations.

The Commission considered various factors, including the negotiation process, the content of the agreement, and the interests of the employees. It found that the agreement had been negotiated in good faith and that the terms were fair and reasonable. The Commission determined that the agreement met the necessary statutory requirements and would not undermine the national minimum standards. The Commission approved the enterprise agreement, recognising its compliance with the relevant legislation and its potential to facilitate better workplace relations.

Accordingly, the Fair Work Commission approved the R.E. McMahon Pty Ltd Plumbers & Trades Assistants Enterprise Agreement 2024 - 2027, effective from the date of the decision. The approval ensures that the agreement is legally binding and enforceable, providing a framework for the terms and conditions of employment between the employer and the employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established