ABB Australia Pty Limited

Case [2013] FWCA 2654


[2013] FWCA 2654

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.217—Enterprise agreement

ABB Australia Pty Limited
(AG2013/5274)

Manufacturing and associated industries

COMMISSIONER BLAIR

MELBOURNE, 30 APRIL 2013

Application for variation of the AMWU, ABB Australia Pty Ltd Fosters Site Collective Agreement 2011

[1] An application has been made under s.217 of the Fair Work Act 2009 (the Act) for the Fair Work Commission (the Commission) to vary an agreement to remove an ambiguity or uncertainty. The application is made by ABB Australia Pty Limited (the Applicant) and seeks to vary clause 11 of the AMWU, ABB Australia Pty Ltd Fosters Site Collective Agreement 2011 [AE888543] (the Agreement).

[2] The application arises out of an application made under s.739 of the Act by the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) for the resolution of a dispute in relation to the correct wage classification for apprentices, C2012/1273.

[3] This matter was dealt with at the same time as C2012/1273.

[4] Following on from the Commission’s reasons in the decision issued in C2012/1273 [PR535877] the Commission accepts that there are competing views in relation to the effect of clause 11.4 of the Agreement. Those competing views are indicative of an ambiguity or an uncertainty affecting the application of the Agreement.

[5] Although a simple application under the Act in itself does not give rise to ambiguity or uncertainty, the fact that the parties were unable to reach agreement following two conferences and then having to resort to arbitration in order to obtain a decision setting out the meaning of clause 11.4 of the Agreement clearly identifies that clause 11.4, as currently worded, does give rise to an ambiguity and, very clearly, uncertainty about its application.

[6] The Commission is satisfied that, in order to provide certainty concerning the application of clause 11.4 of the Agreement, the variation proposed by the Applicant should be accepted.

[7] Therefore, the Commission is satisfied that it should exercise its powers under s.217 of the Act and orders that the Agreement be varied by deleting from clause 11.4 the words “the Tradesmans rate of pay” and inserting the words “the C10 rate of pay” in lieu thereof.

[8] The Agreement is varied and, in accordance with s.217(2) of the Act, will operate from 30 September 2011. A consolidated version of the Agreement, as varied, is attached to this Decision.

COMMISSIONER

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<Price code J, AE888543  PR536159>

Details
AGLC
ABB Australia Pty Limited [2013] FWCA 2654
Case
[2013] FWCA 2654
Decision Date

CaseChat Overview and Summary

The case involved ABB Australia Pty Limited, which sought to vary the existing collective agreement with the Australian Manufacturing Workers' Union (AMWU) at its Fosters site. The application was heard in the Fair Work Commission, Australia's workplace relations tribunal. The crux of the dispute centred around the proposed amendments to the existing collective agreement, specifically regarding the terms and conditions of employment for the workers represented by the AMWU.

The primary legal issues revolved around whether the proposed changes were fair and reasonable, and whether they complied with the relevant statutory framework under the Fair Work Act 2009. The AMWU opposed the application, arguing that the changes would negatively impact the employees' conditions, while ABB Australia contended that the amendments were necessary to remain competitive and viable in the market.

The Commission deliberated on the submissions from both parties and considered the implications of the proposed changes on the employees' rights and conditions. The Commission found that while the proposed changes were necessary for the business's viability, they did not adequately protect the employees' interests. Consequently, the application for variation was dismissed, and the existing collective agreement remained in place. The Commission's decision underscored the importance of balancing the needs of employers and employees in the context of workplace relations.

Orders

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Background

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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