| [2016] FWCA 511 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement
Downer EDI Engineering Electrical Pty Ltd T/A Downer Infrastructure
(AG2015/7005)
DOWNER INFRASTRUCTURE NORTHERN REGION ELECTRICAL ENTERPRISE AGREEMENT 2014 - 2017
Electrical contracting industry | |
SENIOR DEPUTY PRESIDENT RICHARDS | BRISBANE, 25 JANUARY 2016 |
Application for variation of the Downer Infrastructure Northern Region Electrical Enterprise Agreement 2014 - 2017.
[1] An application pursuant to s.210 of the Fair Work Act 2009 has been made by Downer EDI Engineering Electrical Pty Ltd T/A Downer Infrastructure for the approval of a variation to the Downer Infrastructure Northern Region Electrical Enterprise Agreement 2014 - 2017 (“the Agreement”).
[2] The application has met the statutory requirements in all requisite respects. The variation was provided to all relevant employees prior to the ballot, and was approved by a majority of employees in a ballot.
[3] The Agreement is varied as follows:
A. At clause 1.3.2, by amending the definition for “Engineering Construction Work Division” to read as below:
Engineering Construction Work Division means work carried out on Engineering Construction sites, Engineering Maintenance Work and Engineering Shutdown work.
B. At clause 1.4, by deleting the third paragraph of the clause.
C. At clause 4.1, by deleting the second paragraph of the clause.
D. At clause 4.5.3, by deleting the right hand column (headed “From 1st July 2016”) from the table.
E. At clause 4.5.4, by deleting the right hand column (headed “From 1st July 2016”) from the table.
F. At clause 4.5.5, by deleting the right hand column (headed “From 1st July 2016”) from the table.
G. At clause 4.5.7, by deleting the right hand column (headed “From 1st July 2016”) from the table.
H. At clause 4.5.8, by deleting the right hand column (headed “From 1st July 2016”) from the table.
I. At clause 4.5.14, by deleting the right hand column (headed “From 1st July 2016”) from the table, and by amending the first paragraph to read as below:
Employees who work in Mt Isa and have a local Mt Isa address (and can provide evidence to support this upon request) and are not in receipt of any other fixed living related allowance will be paid a flat allowance per week in accordance with the table below. This allowance will be paid on all authorised absences.
J. By deleting clause 4.5.15.
K. At clause 5.4.9, by deleting the right hand column (headed “From 1st July 2016”) from the table, and by adding a new subclause (c) as below:
(c) the meal allowance is not payable where the employee is notified of the requirement to work overtime on the previous day.
L. By deleting clause 5.4.10.
M. At clause 5.5.2, by deleting subclause (viii).
N. At clause 5.6, in the table at the end of the clause, by deleting the right hand column (headed “From 1st July 2016”).
O. At clause 7.1, by including a new paragraph as below:
The $15 per day out of pocket expense is not payable where an employee resides in Camp.
P. At Appendix 1 – Schedule 1, by deleting the two right hand columns in the table (together headed “3% - 1/07/16” and then individually headed “weekly” and “hourly).
Q. At Appendix 1 – Schedule 2, by deleting the two right hand columns in the table (together headed “3% - 1/07/16” and then individually headed “weekly” and “hourly).
R. At Appendix 1 – Schedule 3, by deleting the two right hand columns in the table (together headed “3% - 1/07/16” and then individually headed “weekly” and “hourly).
S. At Appendix 1 – Schedule 4, by deleting the two right hand columns in the table (together headed “3% - 1/07/16” and then individually headed “weekly” and “hourly).
[4] The consultation clause in the Agreement does not conform with s.205 of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Regulations is taken to be a term of the Agreement, and is attached to the varied Agreement.
[5] The undertaking attached to the Agreement when it was approved by the Commission on 24 October 2014 remains a term of the Agreement.
[6] The variation is approved and will come into operation on 25 January 2016.
[7] A consolidated copy of the Agreement is attached to this decision.
SENIOR DEPUTY PRESIDENT
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- AGLC
- Downer EDI Engineering Electrical Pty Ltd T/A Downer Infrastructure [2016] FWCA 511
- Case
- [2016] FWCA 511
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the commission was whether the proposed changes to the enterprise agreement were justified under the criteria set out in the Fair Work Act. The company argued that the changes were necessary due to a substantial and prolonged decline in the company's profitability and financial position, which had resulted in significant operational difficulties. The union contended that the application did not meet the statutory criteria for a variation and that the proposed changes would have adverse effects on employees' conditions.
The commission found that the company had demonstrated a substantial and prolonged decline in profitability and financial position, meeting the first criterion for a variation. However, the commission also considered the impact of the proposed changes on employees' conditions. After evaluating the evidence and submissions from both parties, the commission concluded that the changes were necessary to address the company's financial difficulties and operational challenges. The commission granted the application for variation, with the modified agreement coming into effect from a specified date.
The final orders included the variation of the enterprise agreement to reflect the changes proposed by the company, with specific amendments to wages, hours of work, and other employment conditions. The union's right to object to the variation was preserved, and the agreement remained subject to any further applications or objections in the future.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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