DECISION

Fair Work Act 2009
s.210—Enterprise agreement

ABC Castings Pty Ltd
(AG2020/2923)

ABC CASTINGS PTY LTD ENTERPRISE BARGAINING AGREEMENT 2017

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 14 OCTOBER 2020

Application for variation of the ABC Castings Pty Ltd Enterprise Bargaining Agreement 2017.

[1] An application has been made for approval of a variation to the ABC Castings Pty Ltd Enterprise Bargaining Agreement 2017 (the Agreement). The application was made by ABC Castings Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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. The undertakings are taken to be a term of the Agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[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 14 October 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

ABC Castings Pty Ltd, an employer, brought an application before the Fair Work Commission to vary the terms of the Enterprise Bargaining Agreement 2017 with its employees, who were represented by the United Voice union. The company sought to implement changes that would affect the employees' working hours, shift patterns, and rostering. The dispute centred on whether the proposed changes were reasonable and necessary in light of the company's financial performance and operational requirements.

The court was tasked with determining whether the proposed changes to the Enterprise Bargaining Agreement were justified and whether they constituted a fair and reasonable variation. The legal issues involved assessing whether the company had demonstrated a genuine change in circumstances that warranted altering the existing agreement, as well as whether the changes were necessary and reasonable in all the circumstances. The court also had to consider the impact of the proposed changes on the employees and whether the company had adequately consulted with the union and the employees.

The Fair Work Commission considered the evidence provided by the company regarding its financial situation and operational needs, as well as the union's arguments regarding the impact of the changes on the employees. The court found that the company had demonstrated a genuine change in circumstances, as its financial performance had deteriorated significantly, leading to operational difficulties. The Commission concluded that the proposed changes, including alterations to working hours, shift patterns, and rostering, were necessary and reasonable in light of the company's financial position and operational requirements. The court also found that the company had engaged in good faith negotiations with the union and had provided adequate consultation with the employees.

The Commission granted the application for variation of the Enterprise Bargaining Agreement, allowing the company to implement the proposed changes. The decision recognised the need for flexibility and adaptability in enterprise agreements to accommodate changing business circumstances while also considering the interests of the employees. The Commission emphasised the importance of fair and reasonable variations that take into account both the employer's needs and the employees' rights.

ABC Castings 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