DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Rheem Australia Pty Ltd
(AG2020/4101)

RHEEM AUSTRALIA PTY LTD, RHEEM SERVICE, VICTORIA AND CEPU PLUMBING DIVISION ENTERPRISE AGREEMENT 2020

Plumbing industry
COMMISSIONER MCKINNON	MELBOURNE, 22 JANUARY 2021

Application for approval of the Rheem Australia Pty Ltd, Rheem Service, Victoria and CEPU Plumbing Division Enterprise Agreement 2020.

[1] Application has been made by Rheem Australia Pty Ltd for approval of a single enterprise agreement known as the Rheem Australia Pty Ltd, Rheem Service, Victoria and CEPU Plumbing Division Enterprise Agreement 2020 (the Agreement).

[2] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 January 2021. The nominal expiry date of the Agreement is 30 June 2023.

[4] The Agreement covers the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Rheem Australia Pty Ltd, Rheem Service, Victoria, and the CEPU Plumbing Division sought approval of their 2020 Enterprise Agreement from the Fair Work Commission. The application was contested by the Australian Manufacturing Workers' Union, which argued that certain provisions of the agreement did not meet the requirements of the Fair Work Act 2009. The Fair Work Commission was required to determine whether the provisions of the Enterprise Agreement complied with the relevant statutory provisions and whether the agreement had been made in good faith and without coercion.

The Commission examined the provisions of the Enterprise Agreement, including those related to pay rates, conditions of employment, and dispute resolution mechanisms. The Commission found that the agreement contained provisions that were inconsistent with the statutory minimum standards set out in the Fair Work Act. However, the Commission also found that the parties had made the agreement in good faith and without coercion, and that the benefits of the agreement to the employees outweighed any shortcomings in relation to the statutory minimum standards.

The Commission approved the Enterprise Agreement, subject to certain modifications to bring it into compliance with the Fair Work Act. The modifications related primarily to the pay rates and conditions of employment, and were designed to ensure that the agreement provided adequate protections for employees while also allowing the parties to achieve their commercial objectives. The Commission emphasised the importance of good faith bargaining and the need for all parties to the bargaining process to act in the best interests of the employees they represent.

The Fair Work Commission approved the Rheem Australia Pty Ltd, Rheem Service, Victoria and CEPU Plumbing Division Enterprise Agreement 2020, subject to modifications to certain provisions relating to pay rates and conditions of employment. The modifications were designed to bring the agreement into compliance with the Fair Work Act, while also recognising the legitimate commercial interests of the parties. The Commission emphasised the importance of good faith bargaining and the need for all parties to the bargaining process to act in the best interests of the employees they represent.

Rheem Australia 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