DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AULDEC Solutions Pty Ltd
(AG2020/920)

AULDEC SOLUTIONS ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 28 APRIL 2020

Application for approval of the AULDEC Solutions Enterprise Agreement 2019

[1] AULDEC Solutions Pty Ltd has made an application for approval of an enterprise agreement known as the AULDEC Solutions Enterprise Agreement 2019 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] The employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] The enterprise agreement has been genuinely agreed to by the employees covered by the agreement (see ss 186(2) and 188). I briefly address each of the elements of s 188(1). As to s 188(1)(a), I am satisfied that the employer complied with each of the pre-approval steps specified in s 180(2), (3) and (5). In the latter regard, I consider that the employer took all reasonable steps to ensure that the terms of the agreement, and the effect of those terms, were appropriately explained to employees. The employer also complied with the requirement in s 181(2) by not requesting employees to approve the Agreement until 21 days after the last notice of employee representational rights was given. As to s 188(1)(b), I note that the Agreement was made in accordance with s 182(1). The company requested the employees employed at the time who would be covered by the Agreement to approve it by voting for it, and a majority of those employees who cast a valid vote approved the Agreement. As to s 188(1)(c), I am satisfied that there are no other reasonable grounds for believing that the Agreement has not been genuinely agreed to by the employees.

[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 186, 187, 188 and 190 as is relevant to this application for approval has been met.

[5] The Agreement was approved on 28 April 2020 and, in accordance with s 54, will operate from 5 May 2020. The nominal expiry date of the Agreement is 28 April 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

AULDEC Solutions Pty Ltd sought approval of the AULDEC Solutions Enterprise Agreement 2019 from the Fair Work Commission. The dispute involved the company's request to amend the enterprise agreement to modify the rostering provisions for casual employees, particularly concerning shift changes and notice periods. The company argued the changes were necessary to meet operational demands and improve efficiency. Opposing parties, including employee representatives, contended that the proposed changes would negatively impact employees' work-life balance and job security.

The primary legal issues before the Commission were whether the proposed amendments were fair and reasonable, and whether they complied with the relevant statutory provisions under the Fair Work Act 2009. The Commission needed to determine if the changes were necessary for the company's operational efficiency while also considering the impact on employees. The Commission also had to assess whether the proposed changes met the "better off overall test" as stipulated by the Act.

The Commission found that the proposed changes, while potentially beneficial to the company's operational needs, did not adequately protect employees' rights and interests. The changes would reduce the notice period for shift changes and could lead to increased uncertainty and stress for employees. The Commission emphasised the importance of maintaining a balance between the employer's operational flexibility and the employees' rights to a stable and predictable work environment. The Commission determined that the proposed changes did not meet the better off overall test and rejected the application for approval of the amended agreement.

The Fair Work Commission refused approval of the AULDEC Solutions Enterprise Agreement 2019 as amended. The Commission highlighted the need for a more balanced approach that considers both the company's operational requirements and the employees' welfare. This decision underscores the importance of fair and reasonable terms in enterprise agreements and the necessity of achieving a balance between competing interests.

AULDEC 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