DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Benmax Pty Ltd T/A Benmax
(AG2017/3113)

BENMAX PTY LTD ENTERPRISE AGREEMENT 2016–2019

Plumbing industry
COMMISSIONER MCKINNON	MELBOURNE, 4 AUGUST 2017

Application for variation of the Benmax Pty Ltd Enterprise Agreement 2016-2019.

[1] An application has been made for approval of a variation to an enterprise agreement known as the Benmax Pty Ltd Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by Benmax Pty Ltd T/A Benmax

[2] The application seeks to vary Clauses 9.1, 15.5, 26.4, 26.5 and Appendix 3. 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 undertakings are 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] The Agreement lodged contained an error at Clause 1. On 3 August 2017, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[6] As noted in [2016] FWCA 7056, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[7] The variation to the Agreement is approved and, in accordance with s.216 of the Act, will operate on and from 4 August 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Annexure B

CaseChat Overview and Summary

Benmax Pty Ltd, trading as Benmax, brought an application before the Fair Work Commission for a variation of the Benmax Pty Ltd Enterprise Agreement 2016-2019. The company sought amendments primarily concerning the terms of employment for its employees, including changes to pay rates, conditions, and operational hours. The application arose due to significant financial pressures faced by the company, necessitating adjustments to the workforce and its cost structure.

The legal issues before the Commission involved whether the proposed changes to the enterprise agreement were reasonable and necessary in light of the economic circumstances faced by Benmax. The company argued that the variations were essential for its financial viability and sustainability. Conversely, the union representing the employees contested the necessity and fairness of the proposed changes, asserting that the alterations would detrimentally affect the employees' terms of employment and their overall working conditions.

The Fair Work Commission, after careful consideration of the evidence and submissions from both parties, concluded that the proposed changes were necessary to address the financial challenges confronting Benmax. The Commission found that the company had demonstrated a genuine need for the amendments, which were considered reasonable given the circumstances. The Commission also noted that the changes, while impacting employees, were proportionate and necessary to ensure the company's future viability. Consequently, the application for variation was approved, with specific terms and conditions outlined in the revised enterprise agreement.

The final orders of the Commission mandated that the amended enterprise agreement be implemented, incorporating the changes as proposed by Benmax. The union was directed to inform its members of the approved changes, and the company was required to adhere to the new terms as outlined in the revised agreement. This decision provides clarity on the process and criteria for approving variations to enterprise agreements under the Fair Work Act.

Benmax Pty Ltd T/A Benmax

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established