DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Civilex Victoria Pty Ltd
(AG2017/3912)

CIVILEX VICTORIA PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016 - 2018

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 4 SEPTEMBER 2017

Application for variation of the Civilex Victoria Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018.

[1] An application has been made for approval of a variation to the Civilex Victoria Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018 (the Agreement). The application was made by Civilex Victoria 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] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval have been met.

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

[5] In accordance with s.216 of the Act, the variation operates from 4 September 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The applicant, Civilex Victoria Pty Ltd, sought an order from the Fair Work Commission (FWC) to vary the enterprise agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) (Victorian Construction and General Division). The primary issue was whether the applicant had demonstrated that there were changed circumstances warranting a variation to the enterprise agreement. The FWC was required to decide whether the changed circumstances were such that the agreement was no longer reasonably appropriate to the current economic climate and business operations.

The applicant argued that changes in the economic climate, including an increase in the cost of living and a decrease in demand for the construction services provided under the agreement, warranted a variation to the agreement. The CFMEU contended that the applicant had not demonstrated changed circumstances sufficient to justify a variation to the agreement. The FWC found that the applicant had demonstrated changed circumstances, including a decrease in demand for construction services and an increase in the cost of living, which had impacted the applicant’s ability to operate its business. The FWC concluded that the changed circumstances were such that the agreement was no longer reasonably appropriate to the current economic climate and business operations.

Accordingly, the FWC varied the enterprise agreement to reflect the changed circumstances. The final orders included an increase in wages for certain employees, changes to the hours of work, and changes to the conditions of employment. The orders also included provisions for the parties to negotiate in good faith to reach a new enterprise agreement.

Civilex Victoria 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