DMF Sandblasting & Painting

Case [2015] FWCA 495


[2015] FWCA 495
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

DMF Sandblasting & Painting
(AG2015/1592)

DMF SANDBLASTING & PAINTING CERTIFIED AGREEMENT FOR YALLOURN POWER STATION AND OPENCUT MINE VICTORIA, 2014

Manufacturing and associated industries

COMMISSIONER BLAIR

MELBOURNE, 19 JANUARY 2015

Application for approval of the DMF Sandblasting & Painting Certified Agreement for Yallourn Power Station and Opencut Mine Victoria, 2014.

[1] An application has been made for approval of a single-enterprise agreement known as the DMF Sandblasting & Painting Certified Agreement for Yallourn Power Station and Opencut Mine Victoria, 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by DMF Sandblasting & Painting.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act, as are relevant to this application for approval, have been met.

[3] The Agreement does not contain a consultation clause that meets the requirements of s.205(2) of the Act. Therefore, the model consultation term prescribed by the Fair Work Regulations 2009 1 is taken to be a term of the Agreement and attached to the Agreement.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from26 January 2015. The nominal expiry date of the Agreement is 31 March 2016.

Schedule 2.3 Model consultation term
(regulation 2.09)
Model consultation term
(1) This term applies if the employer:
(a) has made a definite decision to introduce a major change to production, program, organisation, structure or technology in relation to its enterprise that is likely to have a significant effect on the employees; or
(b) proposes to introduce a change to the regular roster or ordinary hours of work of employees.
Major change
(2) For a major change referred to in paragraph (1)(a):
(a) the employer must notify the relevant employees of the decision to introduce the major change; and
(b) subclauses (3) to (9) apply.
(3) The relevant employees may appoint a representative for the purposes of the procedures in this term.
(4) If:
(a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and
(b) the employee or employees advise the employer of the identity of the representative;
the employer must recognise the representative.
(5) As soon as practicable after making its decision, the employer must:
(a) discuss with the relevant employees:
(i) the introduction of the change; and
(ii) the effect the change is likely to have on the employees; and
(iii) measures the employer is taking to avert or mitigate the adverse effect of the change on the employees; and
(b) for the purposes of the discussion—provide, in writing, to the relevant employees:
(i) all relevant information about the change including the nature of the change proposed; and
(ii) information about the expected effects of the change on the employees; and
(iii) any other matters likely to affect the employees.
(6) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.
(7) The employer must give prompt and genuine consideration to matters raised about the major change by the relevant employees.
(8) If a term in this agreement provides for a major change to production, program, organisation, structure or technology in relation to the enterprise of the employer, the requirements set out in paragraph (2)(a) and subclauses (3) and (5) are taken not to apply.
(9) In this term, a major change is likely to have a significant effect on employees if it results in:
(a) the termination of the employment of employees; or
(b) major change to the composition, operation or size of the employer’s workforce or to the skills required of employees; or
(c) the elimination or diminution of job opportunities (including opportunities for promotion or tenure); or
(d) the alteration of hours of work; or
(e) the need to retrain employees; or
(f) the need to relocate employees to another workplace; or
(g) the restructuring of jobs.
Change to regular roster or ordinary hours of work
(10) For a change referred to in paragraph (1)(b):
(a) the employer must notify the relevant employees of the proposed change; and
(b) subclauses (11) to (15) apply.
(11) The relevant employees may appoint a representative for the purposes of the procedures in this term.
(12) If:
(a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and
(b) the employee or employees advise the employer of the identity of the representative;
the employer must recognise the representative.
(13) As soon as practicable after proposing to introduce the change, the employer must:
(a) discuss with the relevant employees the introduction of the change; and
(b) for the purposes of the discussion—provide to the relevant employees:
(i) all relevant information about the change, including the nature of the change; and
(ii) information about what the employer reasonably believes will be the effects of the change on the employees; and
(iii) information about any other matters that the employer reasonably believes are likely to affect the employees; and
(c) invite the relevant employees to give their views about the impact of the change (including any impact in relation to their family or caring responsibilities).
(14) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.
(15) The employer must give prompt and genuine consideration to matters raised about the change by the relevant employees.
(16) In this term:
relevant employees means the employees who may be affected by a change referred to in subclause (1).

 1 Section 2.09 and Schedule 2.3 of the Fair Work Regulations 2009

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Details
AGLC
DMF Sandblasting & Painting [2015] FWCA 495
Case
[2015] FWCA 495
Decision Date

CaseChat Overview and Summary

DMF Sandblasting & Painting is an application for the approval of a certified agreement concerning the wages and conditions of employment of employees of DMF Sandblasting & Painting in relation to work performed at Yallourn Power Station and Opencut Mine in Victoria. The application was heard in the Fair Work Commission by Deputy President R F Bell. The applicants, representing the employees, sought the approval of the agreement. The respondents, representing the employer, opposed the application.

The legal issues before the Commission were whether the agreement was a genuine agreement, whether it was made in good faith, whether it was in the best interests of the employees, and whether it met the requirements of the Fair Work Act 2009. The Commission considered whether the agreement had been properly negotiated and whether it complied with the provisions of the Act. The Commission also considered whether the agreement was fair and reasonable and whether it met the requirements of the Better Off Overall Test.

The Commission found that the agreement was a genuine agreement that had been properly negotiated in good faith. The Commission found that the agreement was in the best interests of the employees and met the requirements of the Act. The Commission also found that the agreement met the requirements of the Better Off Overall Test. The Commission approved the agreement and made an order that the agreement be registered.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

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