Australian Construction Products Pty Limited Summary

[2022] FWCA 1640

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210—Enterprise agreement

Australian Construction Products Pty Limited

(AG2022/1342)

Australian Construction Products Enterprise Agreement 2019

Manufacturing and associated industries
COMMISSIONER JOHNS	MELBOURNE, 19 MAY 2022

Application for variation of the Australian Construction Products Enterprise Agreement 2019

An application has been made for approval of a variation to the Australian Construction Products Enterprise Agreement 2019 (the Agreement). The application was made by Australian Construction Products Pty Limited pursuant to section 210 of the Fair Work Act 2009 (the Act).

The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

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

In accordance with s.216 of the Act, the variation operates from 19 May 2022.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Australian Construction Products Pty Limited, sought a variation to the Australian Construction Products Enterprise Agreement 2019. The application involved a dispute regarding changes to the employment conditions of the workers covered by the agreement, specifically concerning hours of work and shift patterns. The Commission was tasked with determining whether the proposed changes were reasonable and justified under the relevant legislative framework.

The primary legal issues before the Commission were whether the applicant had demonstrated a genuine change in circumstances warranting a variation of the enterprise agreement and whether the proposed changes were fair and reasonable. The Commission had to consider the principles of good faith bargaining and the balance of interests between the employer and the employees. Additionally, it was necessary to assess whether the changes would have a detrimental impact on the employees' terms and conditions of employment.

The Fair Work Commission found that the applicant had not demonstrated a genuine change in circumstances that warranted a variation of the enterprise agreement. The Commission noted that the proposed changes were primarily driven by the applicant's desire to improve operational efficiency and reduce costs. While the Commission acknowledged the employer's right to manage its business, it held that the proposed changes did not meet the threshold for a genuine change in circumstances. Furthermore, the Commission found that the changes would result in a significant detriment to the employees' terms and conditions of employment, including increased working hours and reduced rest periods. The Commission concluded that the proposed changes were not fair and reasonable, and dismissed the application for variation.

As a result, the Fair Work Commission upheld the Australian Construction Products Enterprise Agreement 2019 without variation. The employees' existing terms and conditions of employment, as outlined in the agreement, remained in effect. The employer was required to continue bargaining in good faith with the employees' representatives to reach a new agreement if any changes were to be considered in the future.

Australian Construction Products Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established