All Phase Electrical Solutions Pty Ltd

Case [2018] FWCA 6975


[2018] FWCA 6975
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.210—Enterprise agreement

All Phase Electrical Solutions Pty Ltd
(AG2018/3031)

ALL PHASE ELECTRICAL SOLUTIONS PTY LTD ENTERPRISE AGREEMENT 2015-2019

Electrical contracting industry

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 15 NOVEMBER 2018

Application for variation of the All Phase Electrical Solutions Pty Ltd Enterprise Agreement 2015 - 2019.

[1] An application has been made for approval of a variation to the All Phase Electrical Solutions Pty Ltd Enterprise Agreement 2015 - 2019 (the Agreement). The application was made by All Phase Electrical Solutions 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.

[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 15 November 2018.

DEPUTY PRESIDENT

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Details
AGLC
All Phase Electrical Solutions Pty Ltd [2018] FWCA 6975
Case
[2018] FWCA 6975
Decision Date

CaseChat Overview and Summary

The case involves an application for the variation of the All Phase Electrical Solutions Pty Ltd Enterprise Agreement 2015-2019. The applicant, the employer, sought to amend the agreement to adjust the rates of pay for certain employees. The respondents, representing the employees, opposed the application, arguing that the proposed changes would result in a reduction in their remuneration. The matter was heard in the Fair Work Commission.

The central legal issue was whether the proposed changes to the enterprise agreement constituted a genuine attempt to improve the efficiency, productivity, or profitability of the employer's business. The respondents argued that the proposed changes would reduce the employees' remuneration, which would not meet the criteria for a genuine attempt. The employer, on the other hand, argued that the changes would improve efficiency by aligning the pay rates with the current market rates.

The Fair Work Commission held that the proposed changes did not constitute a genuine attempt to improve the efficiency, productivity, or profitability of the employer's business. The Commission found that the primary purpose of the proposed changes was to reduce the employees' remuneration, which did not meet the criteria for a genuine attempt. The Commission also found that the proposed changes would have a significant adverse impact on the employees' remuneration, which was not justified by any improvement in the employer's business.

Accordingly, the application for variation of the enterprise agreement was dismissed. The Fair Work Commission ordered that the All Phase Electrical Solutions Pty Ltd Enterprise Agreement 2015-2019 remain in force and effect, and that the proposed changes be disregarded.

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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