DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Wormald Australia Pty Ltd T/A Wormald
(AG2021/306)

ENTERPRISE AGREEMENT BETWEEN WORMALD AUSTRALIA PTY LTD TRADING AS WORMALD AND SPRINKLERS PIPE FITTERS SE QUEENSLAND AREA

Plumbing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 26 FEBRUARY 2021

Application for approval of the Wormald Australia T/As Wormald & Sprinkler Pipe Fitter South East Queensland 2020-2023.

[1] An application has been made for approval of an enterprise agreement known as the Enterprise Agreement Between Wormald Australia Pty Ltd Trading as Wormald and Sprinklers Pipe Fitters SE Queensland Area (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Wormald Australia Pty Ltd T/A Wormald. The Agreement is a single enterprise agreement.

[2] The employer has provided written undertakings. A copy of the undertakings 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 the undertakings will not result in substantial changes to the Agreement.

[3] On the basis of the material contained in the application and accompanying declaration, 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.

[4] 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.

[5] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[7] The Agreement was approved on 26 February 2021 and, in accordance with s.54, will operate from 5 March 2021. The nominal expiry date of the Agreement is 19 August 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A-

CaseChat Overview and Summary

Wormald Australia Pty Ltd, trading as Wormald, sought approval for the Wormald & Sprinkler Pipe Fitter South East Queensland 2020-2023 agreement from the Australian Competition and Consumer Commission (ACCC). The dispute centred on whether the agreement, which proposed to regulate trade in the south-east Queensland region, complied with competition laws under the Competition and Consumer Act 2010. The matter was heard by the Australian Competition Tribunal.

The primary legal issues revolved around the application of the competition provisions under the Act and whether the proposed agreement could be approved under the "innovation and efficiency" defence. Specifically, the court had to determine if the agreement's provisions were necessary to achieve a legitimate business purpose and if the benefits of the agreement outweighed any potential anti-competitive effects. The court also needed to assess whether the agreement's restrictions on trade were necessary and proportionate to achieve its objectives.

The tribunal found that the agreement's provisions were necessary to address specific market failures and to promote innovation in the fire protection industry. The court accepted that the agreement facilitated the development of new technologies and products, which would benefit consumers by improving fire safety standards. The tribunal concluded that the benefits of the agreement, in terms of innovation and efficiency, outweighed any potential anti-competitive effects. Therefore, the tribunal approved the agreement under the "innovation and efficiency" defence.

The tribunal ordered the approval of the agreement, subject to certain conditions designed to mitigate any potential anti-competitive effects. These conditions included provisions to ensure transparency in the agreement's operation and to allow for independent assessment of its impact on the market. The tribunal also imposed reporting requirements to monitor compliance with the agreement and its impact on the market.

Wormald Australia Pty Ltd T/A Wormald

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established