| [2016] FWCA 3307 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement
Downer EDI Mining Blasting Services Pty Ltd
(AG2016/1076)
DOWNER EDI MINING BLASTING SERVICES WESTERN REGION METALLIFEROUS ENTERPRISE AGREEMENT 2013
Mining industry | |
COMMISSIONER CLOGHAN | PERTH, 1 JUNE 2016 |
Variation of enterprise agreement.
[1] This is an application by Downer EDI Mining Blasting Services Pty Ltd (Applicant) for approval of a variation of an enterprise agreement.
[2] The enterprise agreement is the Downer EDI Mining Blasting Services Western Region Metalliferous Enterprise Agreement 2013 (Agreement).
[3] The application is made pursuant to s.210 of the Fair Work Act 2009 (FW Act).
[4] In support of the application, the Applicant has provided:
- Form F23 – Application for approval of variation of an enterprise agreement;
- Form F23A – Employer’s statutory declaration in support of variation of an enterprise agreement;
- signed copy of the varied agreement; and
- letter outlining variations sought.
[5] Pursuant to s.211 of the FW Act, the Agreement is varied as follows.
[6] Deleting the title on the cover page, at Clause 1.1 and in the footer and inserting:
“Downer EDI Mining – Blasting Services Western Region Metalliferous Enterprise Agreement 2016 (Variation)”.
[7] Inserting new subclause 2.4.3 Existing Employees as follows, and renumbering existing subclauses:
“2.4.3 Existing Employees
The Company will preserve redundancy entitlements for existing Employees covered by the Agreement immediately prior to the commencement of this variation Agreement until 16 April 2017. The relevant Base Hourly Rate for the purposes of Severance and Retrenchment Pay for existing Employees are set out below:
Classification Level | Base Hourly Rate |
Operator Level 1 | $28.13 |
Operator Level 2 | $30.64 |
Operator Level 3 | $33.13 |
Operator Level 4 | $35.35 |
[8] Replacing the listed Base Hourly Rates at Clause 3.1 Classification Structure and Rates with the following rates:
Classification Level | Base Hourly Rate |
Operator Level 1 | $26.44 |
Operator Level 2 | $28.80 |
Operator Level 3 | $31.14 |
Operator Level 4 | $33.22 |
[9] Deleting Clause 3.2 Annual Wage Review and inserting:
“3.2 Annual Wage Review
The Base Hourly Rates above are fixed for the term of the Agreement.”
[10] Inserting the following at the beginning of subclause 3.3.3 Allowances:
“The Allowances in clause 3.3.3 below apply only to eligible Employees covered by the Agreement immediately prior to the commencement of this Agreement.”
[11] All employees who cast a valid vote approved the variations on 20 April 2016.
[12] The variations are operative from 1 June 2016.
[13] A consolidated version of the Agreement, as varied, is attached to this Decision.
COMMISSIONER
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- AGLC
- Downer EDI Mining Blasting Services Pty Ltd [2016] FWCA 3307
- Case
- [2016] FWCA 3307
- Decision Date
CaseChat Overview and Summary
The central legal issue was whether the employer could lawfully implement changes to the enterprise agreement without the consent of the union. The Commission had to consider whether the proposed changes were in line with the statutory requirements for varying an enterprise agreement and whether they were made in good faith. Additionally, the court needed to determine if the changes were necessary for the employer's operational needs and if they were fair and reasonable.
The Fair Work Commission found that the employer had not acted in good faith when proposing the changes, as it had not adequately consulted with the union. Furthermore, the proposed changes were not necessary for the employer's operational needs, and the changes were not fair and reasonable. Consequently, the Commission rejected the employer's application to vary the enterprise agreement. The decision underscored the importance of good faith negotiations and adequate consultation when varying an enterprise agreement.
The Fair Work Commission ordered that the proposed changes to the enterprise agreement were not to proceed, and the existing terms and conditions of employment would remain in effect. The employer was also required to engage in further negotiations with the union to reach a mutually agreed variation of the enterprise agreement.
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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