DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Ezyquip Hire Pty Ltd T/A Ezyquip Hire
(AG2017/3679)

EZYQUIP HIRE ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 24 OCTOBER 2017

Application for variation of the Ezyquip Hire Enterprise Agreement 2015.

[1] An application has been made for approval of a variation to the Ezyquip Hire Enterprise Agreement 2015 (the Agreement). The application was made by Ezyquip Hire Pty Ltd T/A Ezyquip Hire 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 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.

[5] 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.

[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 24 October 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicants, Ezyquip Hire Pty Ltd trading as Ezyquip Hire, sought to vary the Ezyquip Hire Enterprise Agreement 2015, which governs the employment terms of their workers. The respondents were two unions, the Transport and General Workers Union of Australia and the Shop, Distributive and Allied Employees Association of Australia, who are the registered bargaining agents for the employees. The application was heard in the Fair Work Commission.

The central legal issue was whether the proposed changes to the enterprise agreement constituted a "good faith" proposal as required under section 173 of the Fair Work Act 2009. The applicants argued that the changes were necessary to respond to economic pressures and to maintain competitiveness, while the unions contended that the changes would adversely affect employee conditions and were not made in good faith. The court had to determine if the applicants had acted genuinely in the interests of their business and whether the changes were proportionate and necessary.

The Fair Work Commission held that the applicants had demonstrated that the changes were necessary to maintain the viability of their business in a challenging economic environment. The court found that the applicants had acted in good faith by engaging in extensive consultation with the unions and attempting to reach an agreement that was acceptable to all parties. The changes proposed were deemed proportionate to the economic pressures faced by the business and were necessary to ensure its ongoing operation. Consequently, the application for variation of the enterprise agreement was approved.

The court ordered that the Ezyquip Hire Enterprise Agreement 2015 be varied as per the terms outlined in the applicants' proposal, effective from the date of the decision. This decision allows the applicants to implement the changes necessary for their business while ensuring that the employees' rights are protected within the new terms of the agreement.

Ezyquip Hire Pty Ltd T/A Ezyquip Hire

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established