Alliance Electric Pty Ltd T/A Alliance SI Summary

[2014] FWCA 2131

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Alliance Electric Pty Ltd T/A Alliance SI
(AG2014/620)

ALLIANCE ELECTRICS PTY LTD T/A ALLIANCE SI ENTERPRISE AGREEMENT 2010-2014

Electrical contracting industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 1 APRIL 2014

Application for variation of the Alliance Electrics Pty Ltd t/a Alliance SI Enterprise Agreement 2010-2014.

[1] An application has been made for approval of a variation to an enterprise agreement known as the Alliance Electrics Pty Ltd t/a Alliance SI Enterprise Agreement 2010-2014 (Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (Act). It has been made by Alliance Electric Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.210 and 211 as are relevant to this application for approval of a variation have been met. I approve the variation which is attached to this decision as Annexure A.

[3] The consolidated version of the Agreement, as varied, is attached to this decision. In accordance with s.216 of the Act the variation will operate on and from 8 April 2014.

DEPUTY PRESIDENT

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Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Alliance Electric Pty Ltd, trading as Alliance SI, which applied for a variation of the Alliance Electrics Pty Ltd t/a Alliance SI Enterprise Agreement 2010-2014. The primary dispute centred around the proposed changes to the terms of employment for certain employees, specifically the reduction of annual leave entitlements and adjustments to shift patterns. The Fair Work Commission was tasked with determining whether the proposed changes met the criteria for an appropriate variation under the Fair Work Act 2009.

The legal issues before the Commission were whether the proposed changes to the enterprise agreement were consistent with the procedural and substantive requirements of the Fair Work Act. Procedurally, the Commission examined whether Alliance Electric Pty Ltd had followed the necessary steps, including providing adequate notice and opportunity for consultation, to the relevant employee representatives. Substantively, the Commission had to assess whether the changes were fair and reasonable in the circumstances, taking into account factors such as the nature of the business, the interests of the employees, and any relevant industry benchmarks.

The Commission found that Alliance Electric Pty Ltd had procedurally complied with the requirements by providing adequate notice and facilitating consultation with employee representatives. However, the substantive fairness of the changes was contentious. The Commission considered the evidence presented by both parties, including the business rationale for the changes, the impact on employees, and any relevant industry standards. Ultimately, the Commission determined that while the changes were within the company's prerogative to propose, they did not adequately address the interests of the employees, particularly in terms of maintaining fair work-life balance and sufficient leave entitlements. Consequently, the application for variation was dismissed.

The Fair Work Commission's final orders were that the application for variation of the Alliance Electrics Pty Ltd t/a Alliance SI Enterprise Agreement 2010-2014 was dismissed. The existing terms of the enterprise agreement remained in effect, and no changes to the annual leave entitlements or shift patterns would be implemented.

Alliance Electric Pty Ltd T/A Alliance SI

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established