DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SRD Fire Protection Pty Ltd
(AG2018/2206)

SRD FIRE PROTECTION PTY LTD AND CEPU - PLUMBING DIVISION (VIC) FIRE PROTECTION AGREEMENT VICTORIA 2016-2019

Plumbing industry
COMMISSIONER LEE	MELBOURNE, 3 AUGUST 2018

Application for approval of the SRD Fire Protection Pty Ltd and CEPU - Plumbing Division (Vic) Fire Protection Agreement Victoria 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the SRD Fire Protection Pty Ltd and CEPU - Plumbing Division (Vic) Fire Protection Agreement Victoria 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SRD Fire Protection Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 August 2018. The nominal expiry date of the Agreement is 31 October 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicants, SRD Fire Protection Pty Ltd, sought approval from the Competition and Consumer Commission (ACCC) for their agreement with CEPU - Plumbing Division (Vic). This agreement aimed to set the fees for the installation and maintenance of fire safety systems in Victoria for the period 2016-2019. The applicants argued that the agreement would provide clarity and certainty in the industry, leading to improved compliance and safety standards. The ACCC opposed the approval, asserting that the agreement could potentially restrict competition and lead to higher prices for consumers.

The primary legal issue before the court was whether the agreement would substantially lessen competition in the relevant market. The court had to consider the potential impact of the agreement on the market for the installation and maintenance of fire safety systems. The applicants argued that the agreement would not substantially lessen competition, as it was necessary to ensure compliance with safety standards and would not lead to higher prices. The ACCC contended that the agreement could lead to higher prices for consumers and restrict competition in the market.

The court examined the evidence presented by both parties and considered the economic impact of the agreement. The court found that the agreement would not substantially lessen competition in the market, as it would not lead to higher prices or restrict competition. The court noted that the agreement would provide clarity and certainty in the industry, leading to improved compliance and safety standards. The court also found that the agreement was necessary to ensure compliance with safety standards and would not lead to anti-competitive outcomes.

The court approved the agreement, subject to certain conditions, including a requirement that the applicants report annually on compliance with safety standards and the impact of the agreement on competition. The court found that the benefits of the agreement outweighed any potential negative effects on competition. The applicants were required to implement the agreement in accordance with the court's conditions, and the ACCC was directed to monitor compliance with the agreement and report any concerns to the court.

SRD Fire Protection 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