DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Amayby Pty Ltd T/A SA Building Interiors
(AG2020/1811)

SA BUILDING INTERIORS ENTERPRISE AGREEMENT 2019-2023

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 11 AUGUST 2020

Application for variation of the SA Building Interiors Enterprise Agreement 2019-2023.

[1] An application has been made for approval of a variation to the SA Building Interiors Enterprise Agreement 2019-2023 (the Agreement). The application was made by Amayby Pty Ltd T/A SA Building Interiors 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 9 July 2020. Those undertakings form part of the Agreement as varied.

[6] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

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

[8] In accordance with s.216 of the Act, the variation operates from 11 August 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application by Amayby Pty Ltd, trading as SA Building Interiors, seeking a variation of the SA Building Interiors Enterprise Agreement 2019-2023. The matter was heard in the Fair Work Commission. The applicant sought to amend the agreement to address the economic impact of the COVID-19 pandemic on their business. The legal issues before the commission included whether the pandemic constituted an extraordinary circumstance warranting the variation and whether the proposed changes would cause undue hardship to the employees.

The Fair Work Commission considered the substantial economic impact of the pandemic on the applicant's business, including a significant reduction in turnover and workforce. The commission assessed the impact on both the applicant and the employees, finding that the pandemic indeed constituted an extraordinary circumstance. The proposed changes included a reduction in employee hours and wages, which the commission scrutinised to ensure they did not cause undue hardship to the employees. The commission ultimately determined that the changes were necessary and reasonable given the circumstances, and the application for variation was granted.

The Fair Work Commission concluded that the economic effects of the COVID-19 pandemic warranted the variation of the enterprise agreement to allow for the proposed changes. The commission found that the changes would not cause undue hardship to the employees, and therefore, granted the application for variation. The new terms, including reduced hours and wages, were deemed to be a fair response to the extraordinary circumstances. The final orders reflected the approved variations to the enterprise agreement, effective from the date of the decision.

Amayby Pty Ltd T/A SA Building Interiors

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established