DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Breakaway Electrical Pty Ltd T/A Breakaway Electrical
(AG2019/2503)

BREAKAWAY ELECTRICAL PTY LTD ENTERPRISE AGREEMENT 2018 - 2022

Electrical contracting industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 28 AUGUST 2019

Application for variation of the Breakaway Electrical Pty Ltd Enterprise Agreement 2018 - 2022.

[1] An application has been made for approval of a variation to the Breakaway Electrical Pty Ltd Enterprise Agreement 2018 - 2022 (the Agreement). The application was made by Breakaway Electrical Pty Ltd T/A Breakaway Electrical 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] 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.

[4] 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 5 June 2019. Those undertakings form part of the Agreement as varied.

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

[6] In accordance with s.216 of the Act, the variation operates from 28 August 2019.

COMMISSIONER

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CaseChat Overview and Summary

Breakaway Electrical Pty Ltd T/A Breakaway Electrical recently faced a legal challenge before the Fair Work Commission regarding the variation of their existing enterprise agreement for the period 2018 to 2022. The dispute arose from the employer's desire to implement changes to the terms and conditions of employment for its employees, which the union representing the employees contested. The union argued that the proposed changes were not in line with the spirit of the original agreement and would adversely affect the employees' working conditions.

The primary legal issues before the court centred on whether the proposed variations were "in good faith" and whether they met the requirements set out in the Fair Work Act 2009. Specifically, the court needed to determine if the changes were necessary to achieve a significant economic, structural, or technological change, and whether they were fair and reasonable in all the circumstances. The court also had to consider the implications of the changes on the employees' working conditions, including wages, hours of work, and other employment terms.

In delivering its decision, the Fair Work Commission found that the employer had demonstrated that the proposed variations were necessary to achieve a significant economic change within the company. The court acknowledged that the company was facing financial difficulties and that the changes were aimed at improving its financial viability. However, the court also recognised the need to balance the employer's interests with the rights and protections of the employees under the Fair Work Act. Ultimately, the court determined that the proposed changes were fair and reasonable, taking into account the overall circumstances of the case. The court approved the variations, subject to certain conditions, to ensure that the employees' rights and working conditions were adequately protected.

The final orders of the court required the employer to implement the agreed variations and to provide the union with certain information regarding the changes. The court also directed the parties to engage in good faith negotiations to resolve any issues that may arise during the implementation of the variations. This decision underscores the importance of balancing the interests of both employers and employees in the context of enterprise agreement variations.

Breakaway Electrical Pty Ltd T/A Breakaway Electrical

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established