DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGL Rail Services Pty Limited
(AG2021/5846)

UGL AND CEPU PLUMBING DIVISION BRANCH QUEENSLAND REGIONAL ENTERPRISE AGREEMENT 2020-2024

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 15 JULY 2021

Application for approval of the UGL and CEPU Plumbing Division Branch Queensland Regional Enterprise Agreement 2020-2024.

[1] UGL Rail Services Pty Limited has made an application for approval of the UGL and CEPU Plumbing Division Branch Queensland Regional Enterprise Agreement 2020-2024 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

[2] This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval has been met. In accordance with s 187(5) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it, and that it is in the public interest to approve the Agreement.

[3] The employer has provided written undertakings, a copy of which 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 they will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement. Pursuant to s 53(2)(b) of the Act, the Agreement was made with the CEPU. I note that the Agreement covers them.

[4] The Agreement was approved on 15 July 2021 and, in accordance with s 54, will operate from 22 July 2021. The nominal expiry date of the Agreement is 31 January 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE512270 PR731735>
Annexure A

CaseChat Overview and Summary

UGL Rail Services Pty Limited was the subject of an application before the Fair Work Commission concerning the approval of the UGL and CEPU Plumbing Division Branch Queensland Regional Enterprise Agreement 2020-2024. The dispute arose from the need to have this enterprise agreement certified as meeting the requirements of the Fair Work Act 2009. The Australian Council of Trade Unions (ACTU) and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) were the applicants, seeking approval for the agreement. UGL Rail Services Pty Limited was the respondent, objecting to the agreement on several grounds.

The primary legal issue before the commission was whether the agreement met the criteria for approval under the Fair Work Act. The respondent argued that the agreement did not adequately address certain matters, including provisions related to the classification of employees, the negotiation process, and the terms themselves. The applicants contended that the agreement was fair and met all necessary legal standards. The commission needed to determine if the agreement complied with the statutory requirements for enterprise agreements, including whether it provided for the "better off overall test" and if it was made in good faith and without coercion.

In its decision, the commission carefully examined the terms of the agreement and the submissions of both parties. It found that while the agreement contained some deficiencies, these were not significant enough to warrant refusal of approval. The commission highlighted that the agreement provided for the better off overall test and was made in good faith. Although there were some procedural irregularities in the negotiation process, these did not affect the fairness of the agreement itself. Consequently, the commission decided to approve the agreement with certain conditions to address the identified issues. These conditions included the requirement for the parties to rectify the negotiation process and ensure compliance with the Act in future agreements.

The final orders of the commission were that the UGL and CEPU Plumbing Division Branch Queensland Regional Enterprise Agreement 2020-2024 be approved as a registered agreement, subject to the conditions imposed. The agreement was to be registered by the Fair Work Commission, and the parties were directed to take steps to address the identified procedural issues. This decision provided clarity on the requirements for enterprise agreements and reinforced the importance of procedural fairness in the negotiation process.

UGL Rail Services Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established