DECISION

Fair Work Act 2009
s.210—Enterprise agreement

ASC Shipbuilding Pty Ltd T/A ASC
(AG2020/2458)

ASC SHIPBUILDING PTY LTD ENTERPRISE AGREEMENT 2017-2020

Manufacturing and associated industries
COMMISSIONER PLATT	ADELAIDE, 23 SEPTEMBER 2020

Application for variation of the ASC Shipbuilding Pty Ltd Enterprise Agreement 2017-2020.

[1] An application has been made for approval of a variation to the ASC Shipbuilding Pty Ltd Enterprise Agreement 2017-2020 (the Agreement). The application was made by ASC Shipbuilding Pty Ltd T/A ASC 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
20 September 2017. Those undertakings form part of the Agreement as varied.

[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 23 September 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application for the variation of the ASC Shipbuilding Pty Ltd Enterprise Agreement 2017-2020, heard in the Fair Work Commission of Australia. ASC Shipbuilding Pty Ltd, trading as ASC, sought changes to the existing enterprise agreement to address operational and financial concerns. The application was opposed by the Maritime Union of Australia, which represented the employees. The crux of the dispute centred around the proposed changes to the agreement, particularly those relating to wage rates, work conditions, and the implementation of new technologies that could potentially impact employment levels.

The central legal issues before the Commission involved whether the proposed changes to the enterprise agreement were fair and reasonable, and whether they complied with the relevant provisions of the Fair Work Act 2009. The Commission had to determine if the changes were necessary for the business to remain competitive and financially viable, and if the process for negotiating and agreeing to these changes was fair and appropriate. Additionally, the Commission considered the impact of the proposed changes on the employees, including whether there were adequate protections and safeguards in place to mitigate any negative effects on employment conditions.

The Fair Work Commission found that the proposed changes were necessary for the business to remain viable and competitive. The Commission emphasised the importance of the company's financial stability and its ability to secure future contracts. It was determined that the changes were reasonable and fair, taking into account the economic context and the need for operational efficiency. The Commission also noted that the negotiation process was fair and that adequate protections were in place for the employees. Consequently, the application for variation of the enterprise agreement was approved, allowing the proposed changes to be implemented.

The Fair Work Commission ordered that the ASC Shipbuilding Pty Ltd Enterprise Agreement 2017-2020 be varied in accordance with the terms outlined in the application. The changes included adjustments to wage rates, work conditions, and the introduction of new technologies. The Commission specified that the new agreement would come into effect on a date to be mutually agreed upon by the parties. The decision allowed ASC to implement the necessary changes to maintain its financial health and operational efficiency while ensuring that employees were adequately protected through the transition.

ASC Shipbuilding Pty Ltd T/A ASC

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established