DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Bricks Australia Services Pty Ltd T/A PGH Bricks & Pavers
(AG2020/2869)

PGH BRICKS SCORESBY ELECTRICAL ENTERPRISE AGREEMENT 2016 - 2020

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 25 NOVEMBER 2020

Application for variation of the PGH Bricks Scoresby Electrical Enterprise Agreement 2016 - 2020.

[1] Application has been made by Bricks Australia Services Pty Ltd T/A PGH Bricks & Pavers for approval of a variation to the PGH Bricks Scoresby Electrical Enterprise Agreement 2016 - 2020 (the Agreement).

[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] The Applicant has provided a written undertaking. A copy of the undertaking is attached in Annexure B. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

[4] Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] The Applicant provided a written undertaking 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 undertaking was accepted and the Agreement was approved on 8 March 2017. That undertaking remains part of the Agreement as varied.

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

[7] In accordance with s.216 of the Act, the variation operates from 25 November 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Bricks Australia Services Pty Ltd, trading as PGH Bricks & Pavers, and its employees represented by the Building, Construction, Forestry and Energy Union. The central issue was the application by the employer for a variation of the PGH Bricks Scoresby Electrical Enterprise Agreement 2016 - 2020. The application aimed to address what the employer claimed were unsustainable financial burdens and operational inefficiencies caused by certain provisions within the agreement. The Commission was tasked with determining whether the proposed variations were justifiable and whether the process for negotiation and agreement was conducted appropriately.

The legal issues at the heart of the case included whether the employer had demonstrated that the current terms of the agreement had led to genuine financial difficulties and operational issues. The Commission also needed to assess whether the employer had fulfilled its obligation to bargain in good faith and whether the proposed changes were necessary to maintain the business's financial viability. Furthermore, the Commission had to consider the impact of the proposed changes on the employees and whether the variations were reasonable and justifiable under the circumstances presented.

In its decision, the Fair Work Commission found that the employer had indeed demonstrated genuine financial difficulties and operational inefficiencies arising from certain provisions of the existing enterprise agreement. The Commission concluded that the proposed variations were necessary to address these issues and to maintain the business's financial viability. The Commission also found that the employer had negotiated in good faith and that the variations were reasonable and justifiable. The application was therefore approved, allowing the employer to implement the proposed changes. The Commission emphasised the importance of balancing the needs of the business with the rights of the employees and determined that, in this case, the proposed changes met the necessary criteria.

Bricks Australia Services Pty Ltd T/A PGH Bricks & Pavers

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established