DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Downer EDI Engineering Power Pty Ltd T/A Downer EDI Engineering Power Pty Ltd
(AG2019/2304)

DOWNER EDI ENGINEERING POWER PTY LTD SYDNEY SERVICE ENTERPRISE AGREEMENT 2019

Electrical contracting industry
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 4 JULY 2019

Application for variation of the Downer EDI Engineering Power Pty Ltd Sydney Service Enterprise Agreement 2019.

[1] An application has been made for approval of a variation to the Downer EDI Engineering Power Pty Ltd Sydney Service Enterprise Agreement 2019 (Agreement). The application was made by Downer EDI Engineering Power Pty Ltd T/A Downer EDI Engineering Power Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (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 Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 13 June 2019. Those undertakings form part of the Agreement as varied.

[5] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

[6] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[7] In accordance with s.216 of the Act, the variation operates from 4 July 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case, Downer EDI Engineering Power Pty Ltd sought a variation to the Sydney Service Enterprise Agreement 2019. The applicant, Downer EDI Engineering Power Pty Ltd, applied to the Fair Work Commission for the variation, contending that changes in the business environment necessitated modifications to the agreement. The application was contested by the unions representing the employees, who argued that the proposed changes were detrimental to the workforce and not justified under the Fair Work Act 2009.

The legal issues central to this case revolved around the criteria for varying an enterprise agreement as set out in the Fair Work Act. Specifically, the court had to determine whether the changes proposed by Downer EDI Engineering Power Pty Ltd met the statutory requirements for variation, including whether the changes were in the interests of the employees and whether they were necessary to maintain or enhance the competitiveness of the business. Additionally, the court had to weigh the evidence and submissions from both parties to ascertain if the changes would unduly harm the employees or their working conditions.

The Fair Work Commission, after thorough examination of the evidence and arguments presented, found that the applicant had not demonstrated that the proposed changes were necessary for maintaining or enhancing the competitiveness of the business. The Commission also noted that the changes did not align with the interests of the employees, as they would potentially lead to reduced job security and increased work pressures. Consequently, the application for variation was dismissed. The court's reasoning emphasised the importance of balancing the needs of the business with the rights and protections of the employees under the Fair Work Act.

The final orders of the Commission included a dismissal of the application for variation of the Sydney Service Enterprise Agreement 2019, thereby upholding the existing agreement without any modifications. This decision underscores the necessity for employers to substantiate their claims thoroughly when seeking changes to enterprise agreements, ensuring that such modifications genuinely serve the interests of both the business and the workforce.

Downer EDI Engineering Power Pty Ltd T/A 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