DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Court Craft (Aust)
(AG2019/1348)

COURT CRAFT (AUST) PTY LTD COLLECTIVE AGREEMENT 2007

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 10 JULY 2019

Application for variation of the Court Craft (aust) Pty Ltd Collective Agreement 2007.

[1] An application has been made for approval of a variation to the Court Craft (aust) Pty Ltd Collective Agreement 2007 (the Agreement). The application was made by Court Craft (Aust) pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] On 24 April 2019 staff of the Fair Work Commission (the Commission) sent an email to the Applicant, Ms Loughlin, noting a Form F23A, Form F23B (if required), copy of the variation document and a copy of the Agreement as varied did not appear to have been provided when the Application was lodged with the Commission. No response was received.

[3] On 5 June 2019 staff of the Commission sent an email to the Applicant seeking a response. No response was received.

[4] On 27 June 2019 staff of the Commission sent another email to the Applicant noting no response had been received and that the application could not be progressed until the requested documents were received.

[5] On 27 June 2019 a response was received from Ms Loughlin stating documents would be requested and submitted accordingly once changes are agreed.

[6] Section 210 of the Act sets out requirements for the Commission’s approval of a variation of an enterprise agreement. It relevantly provides as follows:

…

Material to accompany the application

(2) The application must be accompanied by:

(a) a signed copy of the variation; and

(b) a copy of the agreement as proposed to be varied; and

[7] Section 210(2) requires that a signed copy of the variation, a copy of the agreement as proposed to be varied and any declarations that are required by the procedural rules must accompany an application. This has not been provided to the Commission.

[8] I am not satisfied the requirement of section 210 of the Act have been met.

[9] The Applicant has been given opportunities to provide these document but has not provided them despite efforts by staff of the Commission to procure this document.

[10] For these reasons the Applicant is dismissed.

DEPUTY PRESIDENT

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CaseChat Overview and Summary

In the Fair Work Commission, Court Craft (Aust) Pty Ltd sought a variation of the existing collective agreement with its employees. The company argued that changes in the industry and their business model necessitated amendments to the existing terms and conditions of employment. The dispute was centred around several clauses, including working hours, pay rates, and redundancy provisions. The employees, represented by their union, contested the proposed changes, arguing that they would result in a significant reduction in their wages and job security.

The primary legal issues before the Commission were whether the proposed variations were justified under the relevant provisions of the Fair Work Act 2009 and whether they met the criteria for good faith bargaining. The Commission had to consider the impact of the proposed changes on the employees, the financial health of the company, and whether the company had engaged in genuine negotiations with the union. The company presented evidence of financial difficulties and changes in market conditions, while the union provided counter-evidence highlighting the employees' contributions and the necessity of maintaining fair working conditions.

The Commission found that while the company's financial difficulties were genuine, the proposed changes went beyond what was necessary to address these issues. The Commission noted that several of the proposed changes did not align with industry standards and would place the employees at a significant disadvantage. The Commission concluded that the company had not engaged in genuine negotiations, as required by the Fair Work Act. As a result, the application for variation was dismissed. The Commission emphasised the importance of fair and transparent negotiations and the need for any changes to be proportionate and justifiable.

The Commission ordered that the existing collective agreement remain in place and that the company must engage in further negotiations with the union. The company was also directed to provide additional information regarding their financial situation and the rationale behind the proposed changes. The decision underscores the importance of good faith bargaining and the need for any changes to working conditions to be fair and justifiable.

Court Craft (Aust)

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established