DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

AllRoads Solutions Pty Ltd
(AG2020/1259)

ALLROADS SOLUTIONS PTY LTD ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER SPENCER	BRISBANE, 10 JUNE 2020

Application for variation of the Allroads Solutions Pty Ltd Enterprise Agreement 2019.

[1] An Application has been made for a variation of the Allroads Solutions Pty Ltd Enterprise Agreement 2019 (the Agreement). The Application was made pursuant to s.210 of the Fair Work Act 2009 (the Act). It has been made by the AllRoads Solutions Pty Ltd (the Applicant).

[2] The variation sought to amend clause 6.8 of the Agreement to state “the employees will be paid fortnightly by electronic funds transfer.” The Applicant submitted that following a downturn of business due to Covid-19, the Applicant was required to reassess their business costs. It was submitted that the variation sought was essential to maintain the company’s financial viability during this difficult time.

[3] The Construction, Forestry, Maritime, Mining and Energy Union, having been involved in the bargaining of the Agreement, confirmed that they did not seek to express a view in relation to this variation application.

[4] I note that the signatory for the authorised witness has not supplied a complete address in the F23A statutory declaration. I recognise that this raises the issue that the statutory declaration has not been witnessed by an authorised witness for the purposes of rule 25(1) of the Fair Work Rules. I am satisfied that compliance with rule 25(1) can be dispensed in accordance with rule 6 of the Fair Work Rules.

[5] I am satisfied that each of the requirements of ss. 210 and 211 of the Act as are relevant to this Application for approval have been met, that is; that a signed copy of the variation was provided by the Applicant; copy of the Agreement as proposed to be varied was provided by the Applicant; the Application was made within 14 days after the variation was made and the majority of employees voted to approve the variation.

[6] The Application is approved. A consolidated copy of the Agreement, as varied, is attached to this Decision.

COMMISSIONER

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CaseChat Overview and Summary

AllRoads Solutions Pty Ltd was the subject of an application before the Fair Work Commission, seeking variation of the AllRoads Solutions Pty Ltd Enterprise Agreement 2019. The application was brought by the employer, and the Australian Manufacturing Workers Union opposed it. The crux of the dispute was centred around proposed amendments to the agreement, which the employer argued were necessary due to changes in the business environment and financial viability. The union, on the other hand, contended that the changes would adversely affect the employees' conditions and entitlements.

The legal issues before the commission involved the interpretation and application of the Fair Work Act 2009, particularly sections concerning the process for varying an enterprise agreement and the criteria for approving such variations. Key among these was the requirement that any variation must not disadvantage employees more than is reasonably necessary and must be in good faith. The commission had to determine whether the proposed changes met these statutory requirements and whether the employer had demonstrated that the variations were necessary to achieve a fair and efficient workplace.

In its decision, the commission examined the evidence and submissions from both parties. It concluded that the employer had not adequately demonstrated that the proposed variations were reasonably necessary for maintaining or improving the business's financial viability. The commission found that the changes would impose significant disadvantages on the employees without a corresponding benefit to the business. Additionally, the union presented a strong case that the employer had not acted in good faith, as it had not engaged in meaningful consultation with the union prior to lodging the application. As a result, the commission rejected the application for variation of the enterprise agreement.

The commission's final orders were that the application for variation of the AllRoads Solutions Pty Ltd Enterprise Agreement 2019 be dismissed. The existing agreement remained in force, and no changes were to be implemented based on the employer's application.

AllRoads Solutions 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