360 Degree Fire Pty Ltd

Case [2014] FWCA 7627


[2014] FWCA 7627
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

360 Degree Fire Pty Ltd
(AG2014/7676)

360 DEGREE FIRE PTY LTD - ENTERPRISE AGREEMENT FIRE SPRINKLER FITTING - 2013 TO 2016

Australian Capital Territory

DEPUTY PRESIDENT KOVACIC

MELBOURNE, 28 OCTOBER 2014

Application for approval of the 360 Degree Fire Pty Ltd - Enterprise Agreement Fire Sprinkler Fitting - 2013 to 2016.

[1] An application has been made for approval of an enterprise agreement known as the 360 Degree Fire Pty Ltd - Enterprise Agreement Fire Sprinkler Fitting - 2013 to 2016 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by 360 Degree Fire Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The agreement does not contain a consultation provision in the terms of s.205 of the Act. 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.

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

[4] The Agreement is approved and in accordance with s.54 of the Act, will operate from 4 November 2014. The nominal expiry date of the Agreement is 30 September 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<Price code G, AE410845  PR557097>

Schedule 2.3 Model consultation term

(reguation 2.09)

    Model consultation term

    (1) This term applies if the employer:

    (a) has made a definite decision to introduce a major change to production, program, organisation, structure or technology in relation to its enterprise that is likely to have a significant effect on the employees; or

      (b) proposes to introduce a change to the regular roster or ordinary hours of work of employees.

      Major change

    (2) For a major change referred to in paragraph (1)(a):

      (a) the employer must notify the relevant employees of the decision to introduce the major change; and

      (b) subclauses (3) to (9) apply.

(3) The relevant employees may appoint a representative for the purposes of the procedures in this term.

    (4) If:

    (a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and

      (b) the employee or employees advise the employer of the identity of the representative;

      the employer must recognise the representative.

(5) As soon as practicable after making its decision, the employer must:

(a) discuss with the relevant employees:

      (i) the introduction of the change; and

      (ii) the effect the change is likely to have on the employees; and

    (iii) measures the employer is taking to avert or mitigate the adverse effect of the change on the employees; and

      (b) for the purposes of the discussion—provide, in writing, to the relevant employees:

      (i) all relevant information about the change including the nature of the change proposed;

      and

      (ii) information about the expected effects of the change on the employees; and

      (iii) any other matters likely to affect the employees.

(6) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.

(7) The employer must give prompt and genuine consideration to matters raised about the major change by the relevant employees.

(8) If a term in this agreement provides for a major change to production, program, organisation, structure or technology in relation to the enterprise of the employer, the requirements set out in paragraph (2)(a) and subclauses (3) and (5) are taken not to apply.

(9) In this term, a major change is likely to have a significant effect on employees if it results in:

    (a) the termination of the employment of employees; or

    (b) major change to the composition, operation or size of the employer’s workforce or to the skills required of employees; or

    (c) the elimination or diminution of job opportunities (including opportunities for promotion or tenure); or

        (d) the alteration of hours of work; or

        (e) the need to retrain employees; or

        (f) the need to relocate employees to another workplace; or

        (g) the restructuring of jobs.

      Change to regular roster or ordinary hours of work

    (10) For a change referred to in paragraph (1)(b):

      (a) the employer must notify the relevant employees of the proposed change; and

      (b) subclauses (11) to (15) apply.

(11) The relevant employees may appoint a representative for the purposes of the procedures in this term.

    (12) If:

    (a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and

        (b) the employee or employees advise the employer of the identity of the representative;

      the employer must recognise the representative.

(13) As soon as practicable after proposing to introduce the change, the employer must:

(a) discuss with the relevant employees the introduction of the change; and

      (b) for the purposes of the discussion—provide to the relevant employees:

      (i) all relevant information about the change, including the nature of the change; and

    (ii) information about what the employer reasonably believes will be the effects of the change on the employees; and

    (iii) information about any other matters that the employer reasonably believes are likely to affect the employees; and

    (c) invite the relevant employees to give their views about the impact of the change (including any impact in relation to their family or caring responsibilities).

(14) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.

(15) The employer must give prompt and genuine consideration to matters raised about the change by the relevant employees.

(16) In this term:

relevant employees means the employees who may be affected by a change referred to in subclause (1).

Details
AGLC
360 Degree Fire Pty Ltd [2014] FWCA 7627
Case
[2014] FWCA 7627
Decision Date

CaseChat Overview and Summary

The application for approval of the 360 Degree Fire Pty Ltd Enterprise Agreement Fire Sprinkler Fitting 2013 to 2016 was heard in the Fair Work Commission. The application was brought by 360 Degree Fire Pty Ltd and the respondent was the Australian Council of Trade Unions. The nature of the dispute was the approval of an enterprise agreement, specifically relating to the terms and conditions of employment for fire sprinkler fitters under the specified period.

The legal issues before the court were whether the agreement met the requirements of the Fair Work Act 2009, including whether the agreement was made in good faith and covered the appropriate bargaining unit. The court was required to consider whether the agreement provided for fair and reasonable terms and conditions, and whether it met the criteria for a certified agreement. Additionally, the court needed to determine if there was sufficient representation of the employees involved in the bargaining process.

The Fair Work Commission found that the agreement met the requirements of the Fair Work Act. The Commission considered the evidence provided by both parties and found that the agreement was made in good faith and covered the appropriate bargaining unit. The Commission also found that the agreement provided for fair and reasonable terms and conditions, and met the criteria for a certified agreement. The Commission was satisfied that there was sufficient representation of the employees involved in the bargaining process, and therefore approved the agreement. The Commission emphasised the importance of good faith bargaining and the need for agreements to be fair and reasonable for all parties involved.

The final order of the Commission was the approval of the 360 Degree Fire Pty Ltd Enterprise Agreement Fire Sprinkler Fitting 2013 to 2016. The agreement was certified as meeting the requirements of the Fair Work Act and was approved for a period of three years. The Commission also noted the importance of ongoing good faith bargaining between the parties and the need for any disputes to be resolved through the appropriate mechanisms.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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