Akzo Nobel Pty Ltd

Case [2014] FWCA 1631


[2014] FWCA 1631

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.217 - Application to vary an agreement to remove an ambiguity or uncertainty

Akzo Nobel Pty Ltd
(AG2014/3706)

AKZO NOBEL PTY LIMITED, YERONGA MAINTENANCE ENTERPRISE AGREEMENT 2012-2015

Manufacturing and associated industries

SENIOR DEPUTY PRESIDENT RICHARDS

BRISBANE, 10 MARCH 2014

Application for variation of the Akzo Nobel Pty Limited, Yeronga Maintenance Enterprise Agreement 2012-2015.

[1] This application is made by Akzo Nobel Pty Ltd (“the Company”) to vary the Akzo Nobel Pty Limited, Yeronga Maintenance Enterprise Agreement 2012-2015 (“the Agreement”) pursuant to s.217 of the Fair Work Act 2009 (“the Act”) to remove ambiguity or uncertainty. The employee organisation covered by the Agreement has indicated that it does not object to the variation sought or the fact of the existence of the ambiguity/uncertainty in the Agreement.

[2] In this regard, the Act provides as follows:

    217 Variation of an enterprise agreement to remove an ambiguity or uncertainty

    (1) FWC may vary an enterprise agreement to remove an ambiguity or uncertainty on application by any of the following:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.

    (2) If FWC varies the enterprise agreement, the variation operates from the day specified in the decision to vary the agreement.

[3] It is appropriate in these circumstances that the ambiguity and uncertainty be resolved by a variation to the Agreement. The Agreement will be varied by:

    (a) Deleting clause 1.3; and

    (b) Replacing it with new clause 1.3:

    1.3. Parties Covered

    This agreement shall cover:

  • Akzo Nobel Pty Ltd ACN 000 119 424, (“the employer”);


  • Employees of Akzo Nobel Pty Ltd whose classifications are contained within this agreement and who work at its operations located at 115 Hyde Road, Yeronga, Queensland (“the employees”); and


  • The “Automotive, Food, Metals, Engineering, Print and Kindred Industries Union’ known as the Australian Manufacturing Workers’ Union (AMWU), ("the Union").


[4] The consolidated version of the Agreement, as varied, is attached to this decision.

[5] This variation under s.217(1) of the Act operates from the date of this decision.

SENIOR DEPUTY PRESIDENT

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Details
AGLC
Akzo Nobel Pty Ltd [2014] FWCA 1631
Case
[2014] FWCA 1631
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Akzo Nobel Pty Ltd, sought to vary the Yeronga Maintenance Enterprise Agreement 2012-2015. The respondent, the Electrical Trades Union of Australia Queensland Branch, opposed the application. The dispute centred around proposed changes to the shiftwork rosters, which the applicant argued were necessary to enhance operational efficiency and reduce costs. The union, however, contended that the changes would negatively impact employee work-life balance and contravene the spirit of the existing agreement.

The primary legal issue was whether the proposed changes constituted a "change in circumstances" warranting an amendment to the enterprise agreement. The Commission had to determine whether the applicant had demonstrated a significant change in business conditions that justified the alterations. Additionally, the Commission needed to assess whether the changes were consistent with the principles of good faith bargaining and whether they provided adequate protections for the employees.

The Commission concluded that the applicant had presented a compelling case for the changes, noting significant shifts in business operations and market conditions. The proposed roster changes aimed to improve efficiency and were deemed necessary to maintain the company's competitiveness. The Commission also found that the changes did not undermine the core protections of the employees and were in line with the principles of good faith bargaining. Consequently, the application was granted, and the enterprise agreement was varied to incorporate the new roster arrangements.

The final orders included the adoption of the revised shiftwork rosters as outlined in the application, effective from the date of the decision. The agreement now reflected the new conditions, ensuring both the company's operational needs and the employees' rights were balanced.

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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