[2015] FWCA 372

The attached document replaces the document previously issued with the above code on 15 January 2015.

The original document referred to an incorrect agreement in the subject line and in paragraph [1]. The attached document now refers to the correct agreement, Downer EDI Engineering Power Pty Ltd Mechanical Enterprise Agreement 2013-2015.

Patti Ladd

Associate to Commissioner Blair

Dated 16 January 2014

[2015] FWCA 372

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Downer EDI Engineering Power Pty Ltd
(AG2014/11008)

DOWNER EDI ENGINEERING POWER PTY LTD MECHANICAL ENTERPRISE AGREEMENT 2013-2015

Electrical contracting industry
COMMISSIONER BLAIR	MELBOURNE, 16 JANUARY 2015

Application for variation of the Downer EDI Engineering Power Pty Ltd Mechanical Enterprise Agreement 2013-2015.

[1] An application has been made for approval of a variation of the Downer EDI Engineering Power Pty Ltd Mechanical Enterprise Agreement 2013-2015 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by the Downer EDI Engineering Power Pty Ltd.

[2] The variations to the Agreement are attached to this decision and also incorporated into a consolidated version of the Agreement.

[3] I am satisfied that each of the requirements of s.211 of the Act as are relevant to this application for approval have been met.

[4] The application is approved and, in accordance with s.216 of the Act, shall come into effect from15 January 2014.

[5] The consolidated version of the Agreement is attached to this decision.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent decision of Downer EDI Engineering Power Pty Ltd, the Fair Work Commission was called upon to consider an application for the variation of the Downer EDI Engineering Power Pty Ltd Mechanical Enterprise Agreement 2013-2015. The applicant, Downer EDI Engineering Power Pty Ltd, sought changes to the existing agreement, which governs the employment conditions of its mechanical employees. The application was made in response to significant economic and operational changes experienced by the company, necessitating adjustments to the terms and conditions of employment to remain competitive and sustainable.

The legal issues before the Commission centred on whether the proposed changes were necessary and reasonable, and whether the application met the statutory requirements under the Fair Work Act 2009. The Commission had to balance the applicant’s need to adapt to economic realities with the rights and protections of the employees. This involved an analysis of the fairness of the proposed changes, the process followed in negotiating these changes, and the impact on the employees.

The Commission found that the applicant had demonstrated a genuine need for the changes due to the significant economic pressures and operational changes faced by the company. The proposed changes were deemed necessary to maintain the company's viability and competitiveness. The Commission also found that the process of negotiation was fair and that the changes did not undermine the employees' rights and protections to an unacceptable degree. Consequently, the application was approved, allowing for the variation of the existing enterprise agreement as sought by the applicant.

The Commission’s decision provides clarity on the process and criteria for approving variations to enterprise agreements, reinforcing the importance of balancing the needs of employers and the rights of employees in the context of economic change. The approved changes are set to take effect as per the terms outlined in the Commission’s decision.

Downer EDI Engineering Power Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established