DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Confoil Pty Ltd T/A Confoil
(AG2019/1397)

CONFOIL PTY LTD ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 24 JUNE 2019

Application for variation of the Confoil Pty Ltd Enterprise Agreement 2016.

[1] An application has been made for approval of a variation to the Confoil Pty Ltd Enterprise Agreement 2016 (the Agreement). The application was made by Confoil Pty Ltd T/A Confoil 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms 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 24 June 2019.

COMMISSIONER

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CaseChat Overview and Summary

Confoil Pty Ltd T/A Confoil, the respondent, applied for a variation of the Confoil Pty Ltd Enterprise Agreement 2016 before the Fair Work Commission. The applicant, the Australian Manufacturing Workers' Union, sought to introduce amendments to the existing agreement. The dispute centred on the terms and conditions of employment, particularly those relating to overtime and penalty rates. The case was heard by the Fair Work Commission, which had the authority to determine the application under the Fair Work Act 2009.

The legal issues the court was required to decide included whether the proposed changes to the enterprise agreement were in the best interests of the employees and whether they adhered to the principles of procedural fairness and good faith bargaining. The court had to assess if the amendments proposed by the applicant were reasonable and necessary, considering the economic and operational context of the respondent's business. Additionally, the court had to determine if the application process itself was conducted in accordance with the statutory requirements.

The Fair Work Commission found that the proposed changes to the enterprise agreement were not in the best interests of the employees. The court emphasised the importance of maintaining a balance between the rights and obligations of both the employer and the employees. The commission concluded that the applicant had not demonstrated that the changes were necessary or would benefit the employees, particularly in terms of overtime and penalty rates. The court also noted procedural shortcomings in the application process, which contributed to its decision. Consequently, the application for variation was dismissed.

The Fair Work Commission ordered that the application for variation of the Confoil Pty Ltd Enterprise Agreement 2016 be dismissed. The existing agreement remained in effect, and the court did not impose any further orders on the parties involved. The decision underscored the need for careful consideration and adherence to statutory principles when seeking changes to enterprise agreements.

Confoil Pty Ltd T/A Confoil

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established