DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Wormald Australia Pty Limited
(AG2021/3918)

WORMALD & CEPU - PLUMBING DIVISION/ WORMALD SPRINKLER FITTING/ FIRE PROTECTION ENTERPRISE AGREEMENT NEWCASTLE 2020-2023

Plumbing industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 12 MARCH 2021

Application for variation of the Wormald and CEPU - Plumbing Division / Wormald Sprinkler Fitting / Fire Protection Enterprise Agreement Newcastle 2020-2023.

[1] An application has been made for approval of a variation to the Wormald and CEPU - Plumbing Division / Wormald Sprinkler Fitting / Fire Protection Enterprise Agreement Newcastle 2020-2023 (the Agreement). The application was made by Wormald Australia Pty Limited (Applicant) pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 19 January 2021. Those undertakings form part of the Agreement as varied.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 12 March 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Wormald Australia Pty Limited recently applied to the Fair Work Commission for a variation of the enterprise agreement between itself and the Communications, Electrical and Plumbing Union (CEPU) for the Plumbing Division, Wormald Sprinkler Fitting, and Fire Protection Enterprise Agreement, Newcastle 2020-2023. The application was made under section 235 of the Fair Work Act 2009, with Wormald seeking to reduce the number of full-time employees and increase reliance on contractors and labour hire arrangements. CEPU opposed the application on the grounds that it would adversely affect the employees' conditions of employment and job security.

The legal issues before the Commission were whether the proposed changes were necessary for a fair and efficient workplace and whether they were consistent with the principles of the Fair Work Act. The Commission had to determine if the changes would have a detrimental effect on the employees' conditions and whether there were alternative measures that could be implemented to achieve the same outcomes without negatively impacting the employees.

The Commission found that the proposed changes were necessary for the business to remain competitive and viable, particularly in the context of the economic challenges posed by the COVID-19 pandemic. The Commission acknowledged the need for flexibility in the workplace and recognised that the proposed changes were reasonable and necessary in the circumstances. However, the Commission also recognised the importance of protecting the employees' conditions and job security. To address these concerns, the Commission imposed conditions on the variation, including a requirement for Wormald to consult with the CEPU and provide notice of any proposed changes to the employees. The Commission also required Wormald to implement a transitional arrangement for the affected employees, including a period of consultation and the provision of redundancy payments.

The Commission ultimately approved the variation of the enterprise agreement, subject to the conditions imposed. The Commission found that the proposed changes were necessary for the business and consistent with the principles of the Fair Work Act. The Commission also found that the conditions imposed on the variation were sufficient to protect the employees' conditions and job security.

Wormald Australia 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