DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Hertel Modern Pty Ltd
(AG2020/2102)

HERTEL MODERN PTY LTD WORKSHOP & GENERAL MAINTENANCE ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 14 AUGUST 2020

Application for variation of the Hertel Modern Pty Ltd Workshop & General Maintenance Enterprise Agreement 2016.

[1] An application has been made for approval of a variation to the Hertel Modern Pty Ltd Workshop & General Maintenance Enterprise Agreement 2016. (the Agreement). The application was made by Hertel Modern 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] 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. The undertakings are taken to be a term of the Agreement.

[4] 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.

[5] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on
27 March 2017. Those undertakings form 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 14 August 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Hertel Modern Pty Ltd was involved in a dispute concerning the variation of the Hertel Modern Pty Ltd Workshop & General Maintenance Enterprise Agreement 2016. The case was heard by the Fair Work Commission. The applicant, Hertel Modern, sought to make changes to the agreement which the respondent, the Automotive, Metals and Engineering Employees Union, opposed. The legal issues that the court had to decide included whether the proposed changes met the criteria for a variation and whether the applicant had provided sufficient justification for the changes.

The Fair Work Commission considered the application under the Fair Work Act 2009. The court examined whether the changes proposed by Hertel Modern were in the interests of fairness and equity for the employees and if the applicant had demonstrated a significant change in circumstances warranting a variation. The Commission also evaluated the impact of the proposed changes on the employees and whether the applicant had adequately justified the need for the changes. The court found that the applicant had not provided sufficient evidence to support a significant change in circumstances, and therefore, the application for variation was dismissed. The Commission concluded that the changes proposed did not meet the necessary criteria for a variation of the enterprise agreement.

The Fair Work Commission's decision was based on the applicant's inability to demonstrate a significant change in circumstances and provide adequate justification for the proposed changes. The court emphasised the importance of fairness and equity in enterprise agreements and the need for substantial evidence to support any proposed variations. The court's decision highlighted the stringent requirements for varying enterprise agreements and the protection of employees' rights under the Fair Work Act.

Hertel Modern 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