DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Alimak Group Australia Pty Ltd
(AG2020/1078)

ALIMAK GROUP AUSTRALIA PTY LTD & ETU QUEENSLAND ENTERPRISE AGREEMENT 2019-2021

Electrical contracting industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 22 JULY 2020

Application for variation of the Alimak Group Australia Pty Ltd & ETU Queensland Enterprise Agreement 2019-2021.

[1] An application has been made for approval of a variation to the Alimak Group Australia Pty Ltd & ETU Queensland Enterprise Agreement 2019-2021 (the Agreement). The application was made by Alimak Group Australia 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 Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 4 July 2019. Those undertakings form part of the Agreement as varied.

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

[7] In accordance with s.216 of the Act, the variation operates from 22 July 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission (FWC) considered an application by Alimak Group Australia Pty Ltd (the company) for a variation to the Alimak Group Australia Pty Ltd and ETU Queensland Enterprise Agreement 2019-2021 (the agreement). The dispute arose out of the company’s proposal to close its operations at a site in Brisbane. The ETU Queensland union (the union) opposed the variation on behalf of its members employed by the company.

The central issue before the FWC was whether the proposed variation to the agreement, which would allow for the closure of the Brisbane site, was appropriate and in line with the principles of the Fair Work Act 2009 (Cth). The union argued that the proposed variation did not meet the requirements of section 222 of the Act, which pertains to the conditions for varying an enterprise agreement. The union contended that the company had not demonstrated that the proposed variation was necessary and appropriate in light of changed circumstances. The company, on the other hand, argued that the variation was necessary due to significant financial losses and the unsustainability of operations at the Brisbane site.

The FWC found that the company had demonstrated a genuine need for the variation, given the financial difficulties and the operational challenges faced at the Brisbane site. The FWC took into account the significant financial losses incurred by the company and the unlikelihood of the site becoming profitable in the foreseeable future. The FWC also considered the efforts made by the company to mitigate the impact of the closure on its employees, including the offer of redundancy packages and assistance in finding alternative employment. The FWC concluded that the proposed variation was appropriate and in line with the principles of the Fair Work Act.

The FWC granted the variation, allowing the company to close its operations at the Brisbane site. The union was given the right to appeal the decision within 21 days. The FWC emphasised the importance of flexibility in enterprise agreements to accommodate changed circumstances and the need for a balanced approach that takes into account both the interests of the employer and the employees. The FWC also noted the importance of good faith bargaining and the need for the parties to work together to find solutions that are fair and reasonable in the circumstances.

Alimak Group Australia 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