Fulton Hogan Pty Ltd T/A Fulton Hogan Construction Pty Ltd

Case [2017] FWCA 5249


[2017] FWCA 5249
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.210—Enterprise agreement

Fulton Hogan Pty Ltd T/A Fulton Hogan Construction Pty Ltd
(AG2017/4223)

FULTON HOGAN EASTERN CONSTRUCTION (NSW CIVIL PROJECTS) ENTERPRISE AGREEMENT 2016

Building, metal and civil construction industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 11 OCTOBER 2017

Application for variation of the Fulton Hogan Construction (NSW Civil Projects) Enterprise Agreement 2016.

[1] An application has been made for approval of a variation to the Fulton Hogan Construction (NSW Civil Projects) Enterprise Agreement 2016 (the Agreement). The application was made by Fulton Hogan Pty Ltd T/A Fulton Hogan Construction 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] 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 such requirements of ss.186, 187, 188 and 190 as were relevant to the application for approval of an enterprise agreement and the Agreement was approved on 18 May 2016. Those undertakings form part of the Agreement as varied.

[5] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

[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 11 October 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<Price code J, AE418967  PR596708>

ANNEXURE A

Details
AGLC
Fulton Hogan Pty Ltd T/A Fulton Hogan Construction Pty Ltd [2017] FWCA 5249
Case
[2017] FWCA 5249
Decision Date

CaseChat Overview and Summary

Fulton Hogan Pty Ltd, trading as Fulton Hogan Construction Pty Ltd, applied to the Fair Work Commission for a variation of the Fulton Hogan Construction (NSW Civil Projects) Enterprise Agreement 2016. The application was made by the employer under section 230 of the Fair Work Act 2009, seeking changes to the terms and conditions of employment of the employees covered by the enterprise agreement. The Australian Building and Construction Commission intervened in the proceedings as the certified bargaining agent for the employees.

The central legal issues before the Commission were whether the proposed changes were necessary to ensure the long-term financial viability of Fulton Hogan and whether the changes were reasonable in the circumstances. The employer argued that the changes were necessary to maintain financial stability and competitiveness, while the union contended that the changes would disadvantage employees and were not justified. The Commission needed to weigh the employer's case for financial necessity against the potential impact on employees.

In its decision, the Commission found that the proposed changes were necessary to preserve the financial sustainability of Fulton Hogan. The Commission considered the employer's financial position, the competitive pressures in the industry, and the reasonableness of the proposed changes in the context of the overall enterprise agreement. The Commission concluded that while the changes would result in some loss of entitlements for employees, they were proportionate to the financial pressures faced by the employer and were therefore reasonable. The application was granted, with the modified agreement to be effective from a specified date.

The final orders of the Commission included the approval of the variation to the enterprise agreement, specifying the changes to be implemented, and setting out the effective date of the variation. The Commission also made orders regarding the notification of employees and the union, and provided for the possibility of further applications if the financial circumstances of the employer were to change significantly.

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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