DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Mining and Energy Union
(AG2018/454)

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

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 13 MARCH 2018

Application for variation of the Speedpro Industries 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 Speedpro Industries Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018 (the Agreement). The application was made by Construction, Forestry, 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] 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] 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 13 March 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by Speedpro Industries Pty Ltd for a variation of the Enterprise Agreement 2016-2018 with the Construction, Forestry, Mining and Energy Union (CFMEU) Victorian Construction and General Division. The dispute was centred around the company's request to alter certain terms of the existing agreement, which was submitted to the Fair Work Commission for adjudication. The Fair Work Commission, as the body responsible for resolving such industrial disputes, was tasked with determining whether the proposed variations were justifiable under the Fair Work Act 2009.

The primary legal issue the Commission needed to address was whether the proposed changes to the Enterprise Agreement were reasonable and necessary to accommodate changed circumstances, as per section 235 of the Fair Work Act. The Commission had to evaluate the evidence and arguments presented by both parties to determine if the company had demonstrated that the changes were necessary to maintain its commercial viability and competitiveness. Additionally, the Commission needed to consider the impact of the proposed changes on the employees and whether the changes were fair and reasonable in the circumstances.

In reaching its decision, the Commission thoroughly examined the evidence provided by Speedpro Industries, which argued that the variations were necessary due to significant changes in the economic environment, including increased operational costs and a decline in profitability. The Commission also considered the submissions by the CFMEU, which opposed the changes, arguing that they would result in significant detriment to the employees. After careful consideration, the Commission found that the company had not sufficiently demonstrated that the changes were necessary to maintain its commercial viability. The Commission concluded that the proposed variations were not reasonable and did not meet the threshold for approval under the Fair Work Act. Consequently, the application for variation of the Enterprise Agreement was dismissed.

The Commission's final orders included the dismissal of Speedpro Industries' application for variation of the Enterprise Agreement and the reinstatement of the original terms as per the 2016-2018 agreement. The decision emphasised the importance of demonstrating necessity and reasonableness in applications for variations to Enterprise Agreements and highlighted the need for a balanced approach that considers the interests of both employers and employees.

Construction, Forestry, 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