EnerMech Pty Limited

Case [2020] FWCA 7035


[2020] FWCA 7035
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.210—Enterprise agreement

EnerMech Pty Limited
(AG2020/3685)

ENERMECH PTY LIMITED (NSW) ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries

DEPUTY PRESIDENT COLMAN

MELBOURNE, 23 DECEMBER 2020

Application for variation of the EnerMech Pty Limited (NSW) Enterprise Agreement 2018.

[1] An application has been made for approval of a variation to the EnerMech Pty Limited (NSW) Enterprise Agreement 2018 (the Agreement). The application was made by EnerMech Pty Limited 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 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 18 September 2018. Those undertakings form part of the Agreement as varied.

[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 23 December 2020.

DEPUTY PRESIDENT

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Details
AGLC
EnerMech Pty Limited [2020] FWCA 7035
Case
[2020] FWCA 7035
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, EnerMech Pty Limited applied for a variation of the EnerMech Pty Limited (NSW) Enterprise Agreement 2018. The application was made under section 232 of the Fair Work Act 2009. The union representing the employees, United Voice NSW, opposed the application.

The central issue before the Commission was whether the proposed changes to the enterprise agreement met the criteria for a change that was in the interests of the employees, including whether they were necessary to adapt to economic circumstances. The applicant argued that the changes were required to ensure the company's financial viability, while the union contended that the proposed changes would negatively impact the employees' conditions and job security.

The Commission found that the applicant had demonstrated that the proposed changes were necessary to address significant financial challenges facing the company. The changes included revised pay rates, changes to working hours, and flexibility provisions. The Commission considered these changes to be reasonable and in the interests of the employees, given the economic context and the need for the company to remain competitive. The Commission also noted that the union had not provided sufficient evidence to demonstrate that the proposed changes would have a detrimental impact on the employees. Therefore, the application was approved, and the enterprise agreement was varied accordingly.

The Commission ordered that the EnerMech Pty Limited (NSW) Enterprise Agreement 2018 be varied as per the application. The changes included revised pay rates, changes to working hours, and flexibility provisions. The variation was to take effect from the first day of the month following the date of the decision. The Commission also ordered that the applicant and the union provide a copy of the decision to all affected employees.

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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