DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Caledonia Scaffolding Australia Pty Ltd
(AG2019/4209)

CALEDONIA SCAFFOLDING AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2016

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 31 DECEMBER 2019

Application for variation of the Caledonia Scaffolding Australia Pty Ltd Enterprise Agreement 2016.

[1] An application has been made for approval of a variation to the Caledonia Scaffolding Australia Pty Ltd Enterprise Agreement 2016 (the Agreement). The application was made by Caledonia Scaffolding Australia Pty Ltd 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] 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. The undertakings are taken to be a term of the Agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory 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 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 27 October 2016. Those undertakings form 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 31 December 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Caledonia Scaffolding Australia Pty Ltd was the applicant in a matter before the Fair Work Commission, seeking to vary the Enterprise Agreement 2016 to reduce the penalty rates for employees. The dispute arose from the company's contention that the current penalty rates were excessive, given changes in the industry and economic conditions. The matter was heard in the Commission, which has jurisdiction over such applications under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the proposed changes to the penalty rates were reasonable and whether the variation would cause undue hardship to the employees. The applicant argued that the penalty rates were no longer reflective of the industry standards and economic conditions. The employees, represented by a union, contended that the proposed reduction would significantly impact their earnings and living standards. The Commission had to balance the company's need for flexibility and competitiveness against the employees' right to fair remuneration.

In its decision, the Commission found that the proposed changes to the penalty rates were reasonable, taking into account the changes in industry conditions and economic factors. The Commission determined that the employees would not suffer undue hardship as a result of the variation. The Commission also considered the principle of good faith bargaining and the need for the agreement to be fair and reasonable. The application was approved, and the penalty rates were reduced as requested by the applicant. The decision was made in accordance with the statutory framework and principles of fairness and good faith.

The final orders of the Commission included the variation of the Enterprise Agreement 2016 to reduce the penalty rates for employees, effective from the date specified in the application. The new rates were to be clearly stated in the agreement, and the parties were directed to take all necessary steps to give effect to the variation. The Commission also directed that the parties were to continue to negotiate in good faith and to make further variations to the agreement as necessary.

Caledonia Scaffolding Australia 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