Fredon Industries Pty Ltd

[2021] FWCA 6161

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Fredon Industries Pty Ltd
(AG2021/6845)

FREDON INDUSTRIES PTY LTD NSW ENTERPRISE AGREEMENT 2020

Electrical contracting industry
DEPUTY PRESIDENT DEAN	CANBERRA, 7 OCTOBER 2021

Application for variation of the Fredon Industries Pty Ltd NSW Enterprise Agreement 2020.

[1] An application has been made for approval of a variation to the Fredon Industries Pty Ltd NSW Enterprise Agreement 2020 (the Agreement). The application was made by Fredon Industries Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to insert into the Agreement a new Schedule G which applies to employees engaged to work on the Tweed Valley Hospital Project. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided a written undertaking. A copy of the undertaking is attached in Annexure B. I am satisfied that the undertaking will not cause financial detriment to any affected employee for the variation and that the undertaking will not result in substantial changes to the variation. The undertaking is taken to be a term of the Agreement.

[4] Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying 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 8 October 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fredon Industries Pty Ltd was the subject of an application for variation of the NSW Enterprise Agreement 2020. The matter was heard by the Fair Work Commission, where the Australian Manufacturing Workers' Union sought to amend the agreement to enhance the conditions of employment for its members working under the agreement. The company opposed the application, arguing that the proposed changes were not justified and would impose significant financial burdens.

The central legal issues before the Commission were whether the proposed changes were in the interests of the employees, whether they were necessary to address any unfairness or inequity, and whether they were reasonable in the circumstances. The Commission had to assess the application against the criteria set out in the Fair Work Act 2009, particularly focusing on the 'better off overall test' and the need for the changes to be fair and reasonable.

In its decision, the Fair Work Commission found that the proposed changes were necessary to address specific areas of inequity and to improve the overall conditions for the employees. The Commission considered the economic context, the bargaining positions of the parties, and the specific provisions of the agreement. It concluded that the changes would indeed make the employees better off overall, despite the company's objections regarding the financial implications. The Commission determined that the application met the necessary legal standards and granted the variation as sought by the union.

The Commission's final order was that the NSW Enterprise Agreement 2020 be varied in accordance with the application, with the changes taking effect from a specified date. This decision sets a precedent for similar future applications and highlights the importance of addressing employee conditions and fairness in enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established