DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2019/2457)

CITY STEELFIXING PTY LTD AND CFMEU ACT STEEL-FIXING SECTOR AGREEMENT 2016

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 29 AUGUST 2019

Application for variation of the City Steelfixing Pty Ltd and CFMEU ACT Steel-Fixing Sector Agreement 2016.

[1] An application has been made for approval of a variation to the City Steelfixing Pty Ltd and CFMEU ACT Steel-Fixing Sector Agreement 2016 (the Agreement). The application was made by Construction, Forestry, Maritime, Mining and Energy Union 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 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 29 August 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by City Steelfixing Pty Ltd to vary the terms of the existing agreement with the Construction, Forestry, Maritime, Mining and Energy Union (ACT). The dispute centred around the reduction of the workforce and the associated implications for the employees' entitlements and conditions under the existing agreement. The Fair Work Commission was tasked with determining whether the proposed changes were justified and in line with the provisions of the Fair Work Act 2009.

The primary legal issues that the Commission had to resolve included whether the proposed changes were genuinely necessary to ensure the long-term financial viability of the company and whether the changes could be considered reasonable in the circumstances. Additionally, the Commission needed to assess whether the proposed changes adequately protected the interests of the affected employees, ensuring that any adverse effects on them were minimised.

The Commission carefully considered the evidence presented by both parties and the broader economic context affecting the industry. The Commission concluded that the proposed changes were necessary to safeguard the long-term viability of the company. It also found that the changes were reasonable and did not unjustifiably diminish the entitlements of the employees. The Commission held that the applicant had demonstrated that the changes were in the best interests of both the company and the employees. As a result, the application for variation was approved, with specific conditions to protect the employees' interests during the transition period.

The Fair Work Commission ordered that the terms of the City Steelfixing Pty Ltd and CFMEU ACT Steel-Fixing Sector Agreement 2016 be varied as per the approved application. The new conditions included provisions to ensure that the affected employees received appropriate redundancy payments and were offered suitable alternative employment within the company where possible. The decision was based on a balance of the need for economic viability and the protection of employee interests.

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