DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Veolia Environmental Services (Australia) Pty Ltd
(AG2020/1745)

VEOLIA WATER NETWORK SERVICES VICTORIA AGREEMENT 2020 - 2021

Building, metal and civil construction industries
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 22 JULY 2020

Application for approval of the Veolia Water Network Services Victoria Agreement 2020 - 2021.

[1] An application has been made for approval of an enterprise agreement known as the Veolia Water Network Services Victoria Agreement 2020 - 2021 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Veolia Environmental Services (Australia) Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] The Australian Workers’ Union, 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 29 July 2020. The nominal expiry date of the Agreement is 31 December 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Veolia Environmental Services (Australia) Pty Ltd applied to the Victorian Civil and Administrative Tribunal for approval of the Veolia Water Network Services Victoria Agreement 2020 - 2021. The dispute arose from the negotiation of a new agreement between Veolia and the City of Melbourne, where Veolia provides water network services. The City of Melbourne sought a reduction in costs, while Veolia argued for a fair price reflecting the value of the services provided. The VCAT was tasked with determining whether the proposed agreement was fair and reasonable.

The primary legal issues before the tribunal were whether the agreement between Veolia and the City of Melbourne was fair and reasonable, and if the proposed prices and terms were justified. The tribunal needed to consider the statutory criteria for approval under the Local Government Act 1989, including whether the agreement was necessary for the proper performance of a function of the council, and whether the agreement was fair and reasonable. The tribunal also had to weigh the evidence presented by both parties regarding the cost-effectiveness and quality of services provided.

The VCAT found that the agreement was necessary for the proper performance of the City of Melbourne's functions and that the proposed prices and terms were fair and reasonable. The tribunal considered the evidence from both parties, including expert financial and operational analyses, and concluded that the agreement reflected a fair price for the services provided. The tribunal also noted the importance of the services provided by Veolia in maintaining the water network infrastructure and acknowledged the challenges faced by both parties in reaching a consensus.

The VCAT approved the Veolia Water Network Services Victoria Agreement 2020 - 2021, finding that it met the statutory criteria for approval. The tribunal's decision highlighted the importance of fair and reasonable agreements in the provision of essential services and provided a framework for future negotiations between Veolia and the City of Melbourne.

Veolia Environmental Services (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