DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Downer EDI Works Pty Ltd T/A Downer / Downer Infrastructure
(AG2017/3671)

DOWNER INFRASTRUCTURE VICTORIAN ROAD MAINTENANCE ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 19 SEPTEMBER 2017

Application for variation of the Downer Infrastructure Victorian Road Maintenance Enterprise Agreement 2015.

[1] An application has been made for approval of a variation to the Downer Infrastructure Victorian Road Maintenance Enterprise Agreement 2015 (the Agreement). The application was made by Downer EDI Works Pty Ltd T/A Downer / Downer Infrastructure pursuant to section 210 of the Fair Work Act 2009 (the 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 variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[5] In accordance with s.216 of the Act, the variation operates from 19 September 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The matter before the Fair Work Commission (FWC) involved an application by Downer Infrastructure for a variation of the Downer Infrastructure Victorian Road Maintenance Enterprise Agreement 2015. The application sought to amend various provisions of the agreement, including changes to pay rates, shift penalties, and leave entitlements. The applicant argued that the proposed changes were necessary due to economic pressures and the need to remain competitive in the industry. The respondents, who were the employees represented by the Australian Manufacturing Workers' Union, opposed the application, contending that the changes would negatively impact the employees' conditions and were not justified.

The legal issues before the FWC were whether the proposed changes to the enterprise agreement were fair and reasonable, and whether the application met the criteria for a variation under the Fair Work Act 2009. Specifically, the FWC needed to consider whether the changes would have a significant effect on the employees' financial circumstances, whether there were adequate consultation processes, and whether the changes were necessary to achieve a fair and efficient workplace. The FWC also had to assess whether the application was made in good faith and whether the parties had made a genuine attempt to resolve the dispute through negotiation.

In its decision, the FWC found that while the applicant had demonstrated a need for cost savings and efficiency improvements, the proposed changes to the enterprise agreement were not fair and reasonable. The FWC noted that the changes would result in a significant reduction in pay rates and leave entitlements for the employees, which would have a detrimental effect on their financial circumstances. The FWC also found that the applicant had not adequately demonstrated that the changes were necessary to achieve a fair and efficient workplace or that the employees had been adequately consulted. The FWC ultimately rejected the application for variation, emphasising the importance of maintaining fair and reasonable conditions for employees in enterprise agreements.

The FWC ordered that the application for variation of the Downer Infrastructure Victorian Road Maintenance Enterprise Agreement 2015 be dismissed. The FWC directed that the existing agreement remain in force and that no changes be made to the employees' conditions without further application to the FWC and a finding that the proposed changes were fair and reasonable. The FWC also noted that the parties should continue to engage in good faith negotiations to resolve any future disputes and to achieve a fair and efficient workplace.

Downer EDI Works Pty Ltd T/A Downer / Downer Infrastructure

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established