DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/4755)

AUSTRAL INTERIORS PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 5 MAY 2021

Application for variation of the Austral Interiors Pty Ltd / CFMEU Collective Agreement 2019-2022.

[1] An application has been made for approval of a variation to the Austral Interiors Pty Ltd / CFMEU Collective Agreement 2019-2022 (Agreement). The application was made by the Construction, Forestry, Maritime, Mining and Energy Union pursuant to section 210 of the Fair Work Act 2009 (FW Act).

[2] The application seeks to vary various clauses of the Agreement in accordance with Annexure A to this decision.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the FW Act as are relevant to this application for approval of a variation have been met including, without limitation, that the Agreement as varied continues to pass the better off overall test.

[4] A variation was made to the title of the Agreement with the consequence that, throughout the Agreement, the original Agreement title “Austral Interiors Pty Ltd / CFMEU Collective Agreement 2019-2022” has been replaced with the following:

Austral Interiors Pty Ltd / CFMEU Collective Agreement 2019-2023

[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 5 May 2021.

COMMISSIONER

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CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by Austral Interiors Pty Ltd to vary certain provisions of the Collective Agreement with the Construction, Forestry, Maritime, Mining and Energy Union for the period 2019 to 2022. The applicant sought changes to the agreement, including adjustments to shift differentials and penalty rates, in response to significant financial difficulties experienced by the business. The Union opposed the application, arguing that the proposed changes were not warranted and would negatively impact employees.

The primary legal issues the Commission had to address were whether the applicant had demonstrated that the requested changes were necessary due to the financial hardship and whether the changes were consistent with the principles of good faith bargaining and fairness. The Commission needed to consider the evidence presented by both parties regarding the financial circumstances of the applicant and the impact of the proposed changes on employees. Furthermore, the Commission had to assess whether the changes would maintain a balance between the interests of the employer and the employees.

In its decision, the Commission found that the applicant had demonstrated a genuine financial hardship, and the changes were necessary to ensure the continued viability of the business. The Commission acknowledged the Union's concerns about the impact on employees but determined that the changes were reasonable and necessary to address the financial difficulties faced by the employer. The Commission also emphasised the importance of maintaining a balance between the interests of both parties and found that the proposed changes were consistent with the principles of good faith bargaining. Consequently, the Commission granted the application and varied the Collective Agreement as sought by the applicant.

The final orders of the Commission included specific changes to the shift differentials and penalty rates as requested by the applicant. The varied provisions came into effect from the date of the decision, and both parties were directed to implement the changes in accordance with the amended Collective Agreement.

Construction, Forestry, Maritime, Mining and Energy Union

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established