DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Alpine MDF Industries Pty Limited
(AG2018/5627)

ALPINE MDF INDUSTRIES PTY LTD ENTERPRISE AGREEMENT 2016

Timber and paper products industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 25 FEBRUARY 2019

Application for variation of the Alpine MDF Industries Pty Ltd Enterprise Agreement 2016.

[1] An application has been made for approval of a variation to the Alpine MDF Industries Pty Ltd Enterprise Agreement 2016 (the Agreement). The application was made by Alpine MDF Industries Pty Limited 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] I note that clauses 11.4, 15.6.1, 16.6, 19 and 21 are inconsistent with the National Employment Standards as personal and annual leave are expressed in hours; annual leave is expressed as being available after 12 months service and casual employees do not appear to receive leave entitlements. Given the National Employment Standards precedence clause at clause 9A.1 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[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 25 February 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Alpine MDF Industries Pty Limited, a manufacturer of engineered wood products, brought an application to the Fair Work Commission (FWC) seeking a variation of the Alpine MDF Industries Pty Ltd Enterprise Agreement 2016. The company sought to amend various aspects of the agreement, including pay rates, work arrangements, and the classification of employees. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which represented the employees. The dispute centred around whether the proposed changes were necessary to ensure the company's long-term viability and competitiveness, or whether they constituted an unreasonable interference with the employees' rights under the Fair Work Act 2009.

The FWC was required to consider whether the proposed changes were consistent with the principles of the Fair Work Act and the objectives of the enterprise agreement. Key issues included the company's financial position, the impact of the proposed changes on employees' conditions, and the extent to which the changes were necessary to maintain or enhance the company's competitiveness. The FWC also had to assess whether the proposed changes were reasonable and whether the process followed by the company in seeking the variation was fair and appropriate.

The FWC found that the company's financial position was precarious and that the proposed changes were necessary to ensure its long-term viability. The FWC considered that the changes were reasonable and would not have an unreasonable detrimental effect on the employees. The Commission also found that the process followed by the company in seeking the variation was fair and appropriate, and that the proposed changes were consistent with the principles of the Fair Work Act. Accordingly, the FWC varied the enterprise agreement as sought by the company.

The final orders of the FWC included a variation to the enterprise agreement to reflect the changes sought by Alpine MDF Industries Pty Limited. The variation included changes to pay rates, work arrangements, and employee classification, among other things. The FWC also made orders to ensure that the employees were adequately informed of the changes and that there was an opportunity for them to provide feedback on the variation.

Alpine MDF Industries Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established