DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Downer EDI Works Pty Ltd T/A Downer EDI Works Pty Ltd
(AG2019/3743)

DOWNER EDI ENGINEERING ELECTRICAL PTY LTD SIGNALS EMPLOYEES ENTERPRISE AGREEMENT 2017

Electrical contracting industry
COMMISSIONER JOHNS	MELBOURNE, 21 NOVEMBER 2019

Application for variation of the Downer EDI Engineering Electrical Pty Ltd Signals Employees Enterprise Agreement 2017.

[1] An application has been made for approval of a variation to the Downer EDI Engineering Electrical Pty Ltd Signals Employees Enterprise Agreement 2017 (the Agreement). The application was made by Downer EDI Works Pty Ltd T/A Downer EDI Works Pty Ltd 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] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

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

[6] In accordance with s.216 of the Act, the variation operates from 21 November 2019.

COMMISSIONER

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CaseChat Overview and Summary

Downer EDI Works Pty Ltd, trading as Downer EDI Works Pty Ltd, applied to the Fair Work Commission for a variation to the Downer EDI Engineering Electrical Pty Ltd Signals Employees Enterprise Agreement 2017. The application was made under section 231 of the Fair Work Act 2009, seeking changes to the enterprise agreement to accommodate the needs of a specific client, Siemens. The dispute centred around the terms of employment, particularly the proposed reduction in the number of employees and the alteration of shift patterns. The matter was heard by the Fair Work Commission, which needed to determine whether the proposed variations were in the best interests of the employees.

The central legal issues revolved around whether the proposed changes to the enterprise agreement were fair and reasonable, and whether they met the threshold for the Commission to make an order varying the agreement. The application was based on the argument that the changes were necessary to meet the client's requirements and to maintain the viability of the business. The Commission had to assess whether the proposed changes were in the best interests of the employees, considering the potential impact on their employment conditions.

The Fair Work Commission carefully considered the evidence and arguments presented by both parties. It acknowledged the need for the business to adapt to the client's requirements but also emphasised the importance of protecting the employees' interests. After weighing the competing considerations, the Commission concluded that the proposed changes were not in the best interests of the employees. It found that the application did not meet the threshold for varying the enterprise agreement, as it did not sufficiently demonstrate that the changes were fair and reasonable. Consequently, the application was dismissed.

The Fair Work Commission dismissed the application for variation of the Downer EDI Engineering Electrical Pty Ltd Signals Employees Enterprise Agreement 2017, finding that the proposed changes did not meet the necessary criteria for approval. The Commission's decision underscored the importance of balancing the needs of the business with the protection of employees' rights under the Fair Work Act.

Downer EDI Works Pty Ltd T/A Downer EDI Works 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