DECISION

Fair Work Act 2009
s.210—Enterprise agreement

AE Smith & Sons Pty Ltd
(AG2017/5982)

A E SMITH & SONS TASMANIA CONSTRUCTION ENTERPRISE AGREEMENT 2016 - 2018

Tasmania
DEPUTY PRESIDENT GOSTENCNIK	PERTH, 18 JANUARY 2018

Application for variation of the A E Smith & Sons Tasmania Construction Enterprise Agreement 2016 - 2018.

[1] An application has been made for approval of a variation to the A E Smith & Sons Tasmania Construction Enterprise Agreement 2016 - 2018 (the Agreement). The application was made by AE Smith & Sons 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] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] 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.

[5] 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.

[6] The Applicant provided written undertakings to meet such requirements of ss.186, 187, 188 and 190 as were relevant to the application for approval of an enterprise agreement and the Agreement was approved on 14 November 2016. Those undertakings form part of the Agreement as varied.

[7] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

[8] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[9] In accordance with s.216 of the Act, the variation operates from 18 January 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AE Smith & Sons Pty Ltd, a construction company, applied to the Fair Work Commission to vary the A E Smith & Sons Tasmania Construction Enterprise Agreement 2016-2018. The application was made in response to changes in the economic climate and operational challenges faced by the company. The dispute involved the proposed amendments to the agreement, which the applicant sought to implement, and the objections raised by the union representing the employees.

The primary legal issue before the Commission was whether the proposed changes to the enterprise agreement were justified under the Fair Work Act 2009. Specifically, the Commission had to consider if the changes were necessary to address the economic challenges faced by the company and if they were consistent with the principles of good faith bargaining. Additionally, the Commission needed to determine if the changes would have a detrimental impact on the employees' conditions of employment.

The Commission found that the economic challenges faced by AE Smith & Sons Pty Ltd warranted a variation of the enterprise agreement to ensure the company's viability. The changes proposed by the applicant were considered necessary to address the financial difficulties and to maintain the company's operations. The Commission also found that the applicant had engaged in good faith bargaining with the union, despite the union's objections. The changes proposed did not have a significant detrimental impact on the employees' conditions of employment, and therefore, the application for variation was approved.

The Fair Work Commission approved the variation of the A E Smith & Sons Tasmania Construction Enterprise Agreement 2016-2018, effective from the date of the decision. The changes included adjustments to the employees' working hours, overtime provisions, and the introduction of a new shift system. The union's objections were overruled, and the applicant was granted the authority to implement the changes. The decision emphasised the importance of balancing the needs of the employer and the employees while ensuring the long-term sustainability of the company.

AE Smith & Sons 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