STATEMENT

Fair Work Act 2009
s.576(2)(aa) - Promoting cooperative and productive workplace relations and preventing disputes

Sydney Water Corporation T/A Sydney Water

and

Australian Municipal, Administrative, Clerical and Services Union (ASU), Professionals Australia (PA) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU)
(NA2014/4)

DEPUTY PRESIDENT BOOTH

SYDNEY, 6 JUNE 2017

[1] On 11 April 2017, the Fair Work Commission issued a Statement 1 reporting on the progress of Enterprise Bargaining negotiations between Sydney Water Corporation T/A Sydney Water and the Australian Municipal, Administrative, Clerical and Services Union (ASU), Professionals Australia (PA) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU).

[2] Negotiations arose from advice by the Board of Sydney Water that it intended to make a decision on 22 March 2017 (later deferred to 27 April 2017) about whether its Civil Maintenance and Water and Waste Water Treatment Business units should be kept in house or outsourced to the private sector. The criteria which the Board said it would consider are cost, safety and customer services.

[3] Some of the options which were generated by the parties during negotiations, which are recorded in the FWC Statement of 11 April 2017 were aimed at reducing costs and therefore optimising the prospect of the Civil Maintenance and Treatment workforces remaining in house. The parties agreed that job security for the Civil Maintenance and Treatment workforces was an essential component of an enterprise agreement proposal which included these cost reducing options.

[4] The ASU held a mass meeting of their members in Civil Maintenance on 12 April 2017 to discuss the options referred to the in FWC Statement. The meeting endorsed a proposed enterprise agreement incorporating these options.

[5] Subsequent meetings were held with the balance of the ASU membership and members of PA and CEPU which endorsed the content of a proposed enterprise agreement.

[6] The Board of Sydney Water met on 27 April and decided to keep an in house workforce in both its Civil Maintenance and Water and Waste Water Treatment Business units for at least the three year nominal term of the Agreement.

[7] Employees will be asked to approve the agreement in accordance with the provisions of the Fair Work Act later in June.

[8] Before that occurs, the parties are asking the NSW Government to confirm its commitment to the Board’s decision to keep an in house workforce in both its Civil Maintenance and Water and Waste Water Treatment Business units for at least the three year nominal term of the Agreement by tabling this Statement in Parliament. This is consistent with recent statements that have been made by the Honourable Don Harwin MLC, Minister for Resources, Minister for Energy and Utilities and Minister for the Arts in Parliament about the NSW Government’s preference for an in house workforce.

DEPUTY PRESIDENT

1 [2017] FWC 2052.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission issued a statement regarding the progress of enterprise bargaining negotiations between Sydney Water Corporation and the Australian Municipal, Administrative, Clerical and Services Union (ASU), Professionals Australia (PA) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU). The negotiations were initiated following the Board of Sydney Water's intention to decide on whether its Civil Maintenance and Water and Waste Water Treatment Business units should remain in house or be outsourced to the private sector. The Board planned to make a decision based on cost, safety, and customer service criteria. The parties aimed to reduce costs and ensure job security for the Civil Maintenance and Treatment workforces.

The legal issues before the Fair Work Commission involved the process and outcomes of the enterprise bargaining negotiations. The Commission had to consider whether the parties had adequately addressed the issues of cost reduction, job security, and the impact of outsourcing on the workforce. The Commission also needed to ensure that the negotiations were conducted in a manner that promoted cooperative and productive workplace relations.

The Fair Work Commission found that the parties had engaged in good faith negotiations and reached a proposed enterprise agreement that addressed the critical issues of cost reduction and job security. The ASU, PA, and CEPU had held meetings with their members to endorse the proposed agreement. The Board of Sydney Water subsequently decided to retain an in-house workforce for at least the three-year term of the agreement. The Commission issued the statement to support the Board's decision and to request the NSW Government to confirm its commitment to maintaining an in-house workforce. This statement was made in line with the Minister's recent parliamentary statements.

The Fair Work Commission issued a statement endorsing the proposed enterprise agreement and the Board's decision to maintain an in-house workforce. The Commission requested the NSW Government to confirm its commitment to this decision. The proposed agreement will now be put to employee approval in accordance with the Fair Work Act.

Sydney Water Corporation T/A Sydney Water andAustralian Municipal, Administrative, Clerical and Services Union (ASU), Professionals Australia (PA) and the Communications, Electrical, Electronic, Energy,...

STATEMENT

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established