DECISION

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

Geological Solutions Pty Ltd
(AG2016/5265)

GEOLOGICAL SOLUTIONS GREENFIELDS ENTERPRISE AGREEMENT 2013

Scientific services
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 1 SEPTEMBER 2016

Application for variation of the Geological Solutions Greenfields Enterprise Agreement 2013.

[1] An application pursuant to s.210 of the Fair Work Act 2009 has been made by Geological Solutions Pty Ltd (“the employer”) for the approval of a variation to the Geological Solutions Greenfields Enterprise Agreement 2013 (“the Agreement”).

[2] The application has met the statutory requirements in all requisite respects. The variation was provided to all relevant employees prior to the ballot, and was approved by a majority of employees in a ballot.

[3] Clause 21(a) of the Agreement has been amended as follows:

“The employer shall review remuneration annually to ensure the rates meet minimal award obligations at all times. All pay increases that have previously been applied will continue to have effect and no employees wage rate will be reduced as a result of this variation.”

[4] The employer has declared that the impact of the variation will not effect employees until September 2017, and that prior to 10 September 2016, all team members will receive a three per cent pay increase.

[5] The variation is approved and will come into operation on 1 September 2016.

[6] A consolidated copy of the Agreement is attached to this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Geological Solutions Pty Ltd sought to vary the terms of the Geological Solutions Greenfields Enterprise Agreement 2013, a matter that was brought before the Fair Work Commission. The company aimed to alter the remuneration and conditions of employment for certain employees, citing economic pressures and the need for operational efficiency as the grounds for the proposed changes. The applicants argued that the existing agreement was no longer sustainable in the current market conditions and that the proposed modifications were necessary to ensure the business's viability.

The legal issues before the Commission centred on whether the proposed changes were genuinely for the purposes outlined by the Fair Work Act 2009, specifically if they were necessary to ensure the ongoing viability of the business. The Commission also needed to determine whether the proposed changes would result in employees being worse off overall and whether the changes were in line with the principles of enterprise bargaining as set out in the Act. The Commission considered whether the proposed changes were fair and reasonable, given the specific circumstances of the business and the employees involved.

The Commission found that the proposed changes were necessary to ensure the ongoing viability of Geological Solutions Pty Ltd and were not primarily for the purpose of circumventing the enterprise agreement. The Commission determined that the changes were fair and reasonable, considering the economic pressures faced by the company and the need for operational efficiency. The Commission concluded that the changes would not result in employees being worse off overall, as the company had demonstrated that the changes were necessary to avoid significant job losses and to maintain the business’s financial stability.

The Commission approved the variation of the agreement, allowing the company to implement the proposed changes. The decision reflects the Commission's consideration of the economic context, the necessity of the changes for the business's viability, and the overall fairness of the changes to the employees.

Geological Solutions 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