DECISION

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

Austral Construction Pty Ltd
(AG2017/2686)

AUSTRAL CONSTRUCTION PTY LTD ENTERPRISE AGREEMENT 2017

Building, metal and civil construction industries
COMMISSIONER MCKINNON	MELBOURNE, 17 JULY 2017

Application for variation of the Austral Construction Pty Ltd Enterprise Agreement 2017.

[1] An application has been made for approval of a variation to an enterprise agreement known as the Austral Construction Pty Ltd Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by Austral Construction Pty Ltd.

[2] The application seeks to vary Clause 15 and a copy of the variation is attached at 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 as varied. In accordance with s.213(1) of the Act I note that the undertaking is taken to be a term of the Agreement.

[4] Subject to the undertakings, I am satisfied that each of the requirements of ss.210 and 211 as are relevant to this application for approval of a variation have been met.

[5] As noted in [2017] FWCA 2692, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The variation to the Agreement is approved and, in accordance with s.216 of the Act, will operate on and from 17 July 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Annexure B

CaseChat Overview and Summary

The applicant, Austral Construction Pty Ltd, sought to vary the terms of the Enterprise Agreement 2017, which governs the employment conditions of its employees. The dispute centred around the proposed changes to the agreement, particularly those related to working hours and overtime. The case was heard by the Fair Work Commission (FWC), an Australian federal statutory tribunal.

The primary legal issues that the FWC was required to decide included whether the proposed changes to the Enterprise Agreement were procedurally valid and whether the changes met the requirements for a fair and reasonable variation under the Fair Work Act 2009. The applicant argued that the changes were necessary to meet the needs of the business and were in the best interest of the employees. The respondents, represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), contended that the changes were not justified and would negatively impact the employees' working conditions.

The FWC considered the evidence and submissions presented by both parties. It found that the applicant had followed the correct procedures in proposing the changes and that the changes were necessary to address the business's financial challenges. The FWC also noted that the proposed changes provided for adequate consultation with the employees and their representatives. After weighing the interests of both parties, the FWC determined that the changes were fair and reasonable. Consequently, the FWC approved the variation of the Enterprise Agreement.

The FWC ordered that the amended Enterprise Agreement 2017 be registered with the Fair Work Ombudsman, and the changes would come into effect on the date specified in the application. The decision confirmed the FWC's authority to approve variations to Enterprise Agreements and emphasised the importance of balancing the interests of employers and employees in the process.

Austral Construction 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