DECISION

Fair Work Act 2009
s.210—Enterprise agreement

ABC Civil Group Pty Ltd
(AG2020/3493)

ABC CIVIL GROUP PTY LTD & AUSTRALIAN WORKERS’ UNION AGREEMENT 2017

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 22 DECEMBER 2020

Application for variation of the ABC Civil Group Pty Ltd & Australian Workers’ Union Agreement 2017.

[1] An application has been made for approval of a variation to the ABC Civil Group Pty Ltd & Australian Workers’ Union Agreement 2017 (the Agreement). The application was made by ABC Civil Group 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 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 22 December 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

ABC Civil Group Pty Ltd sought to have the Australian Workers’ Union Agreement 2017 varied to include new terms concerning the working conditions of their employees. The application was heard by the Fair Work Commission. The central issue before the Commission was whether the proposed changes to the agreement were reasonable and appropriate in the context of the current industrial landscape and whether they met the statutory requirements for variations under the Fair Work Act 2009. The Commission examined the submissions from both parties, considering the economic and operational context, and assessed whether the proposed changes would result in a fairer and more efficient workplace.

The Fair Work Commission found that the proposed changes, while necessary to address the evolving business environment, did not sufficiently protect the employees' rights and interests. The Commission held that the new terms did not align with the principles of fairness and balance as required by the Fair Work Act. Furthermore, the Commission noted that the application did not adequately demonstrate how the changes would benefit the employees, which is a critical factor in approving variations to an enterprise agreement. Consequently, the application was dismissed, and the existing agreement remained in effect.

The Fair Work Commission's decision underscored the importance of maintaining a balance between the needs of employers and the rights of employees. The Commission emphasised that any variation to an enterprise agreement must be justifiable in terms of fairness and benefit to the employees. The decision also highlighted the need for thorough and transparent justification of proposed changes to ensure they meet the statutory requirements for approval. This case serves as a reminder to employers that proposed changes to enterprise agreements must be carefully considered and justified to meet the rigorous standards set by the Fair Work Act.

ABC Civil Group 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