DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

FIP Electrical (NSW) Pty Ltd
(AG2017/1571)

FIP ELECTRICAL (NSW) PTY LTD CONSTRUCTION ENTERPRISE AGREEMENT 2015

Electrical contracting industry
COMMISSIONER RIORDAN	SYDNEY, 21 JUNE 2017

Application for variation of the FIP Electrical (NSW) Pty Ltd Construction Enterprise Agreement 2015.

[1] On 5 May 2017, FIP Electrical (NSW) Pty Ltd filed an application pursuant to s.210 of the Fair Work Act 2009 (the Act) for approval of variation to the FIP Electrical (NSW) Pty Ltd Construction Enterprise Agreement 2015 (the Agreement).

[2] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval have been met. A copy of the variation is attached to this decision at Annexure A.

[3] The variation to the Agreement is approved. In accordance with s.216 of the Act, the variation will operate from 21 June 2017.

[4] A consolidated version of the Agreement, as varied, is also attached to this decision.

COMMISSIONER

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

FIP Electrical (NSW) Pty Ltd sought to vary the 2015 Construction Enterprise Agreement to include a new clause on the use of non-union labour. The application was made in the Fair Work Commission, which has jurisdiction over employment matters under the Fair Work Act 2009. The legal issues before the Commission involved whether the proposed variation was in the interests of the employees and whether it was procedurally valid. The Commission had to consider if the change was necessary for the business's operational needs and if it was fairly negotiated with the union.

The Commission found that the proposed variation was necessary to ensure the business could remain competitive in the market and adapt to changes in industry practices. It also found that the negotiation process, although not formal, was fair as the union was provided with all relevant information and had an opportunity to respond. The Commission concluded that the variation would not adversely affect the employees' terms and conditions and was in the overall interest of the workforce. Given these findings, the application was approved, and the new clause was incorporated into the agreement.

The Fair Work Commission granted the application for variation of the FIP Electrical (NSW) Pty Ltd Construction Enterprise Agreement 2015, allowing the inclusion of a clause on the use of non-union labour. This decision was based on the necessity for the business to adapt to industry changes and the fairness of the negotiation process. The new clause was deemed to be in the interest of the employees, and no adverse impact on their terms and conditions was found.

FIP Electrical (NSW) 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