DECISION

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

Holdco Holdings Pty Ltd T/A Southern Shorthaul Railroad
(AG2014/10421)

SOUTHERN SHORTHAUL RAILROAD ENTERPRISE AGREEMENT 2012

Rail industry
COMMISSIONER CARGILL	SYDNEY, 19 JANUARY 2015

Application for variation of the Southern Shorthaul Railroad Enterprise Agreement 2012.

[1] An application has been made for approval of variations to an agreement known as the Southern Shorthaul Railroad Enterprise Agreement 2012 (the Agreement). The application was made pursuant to section 210 of the Fair Work Act 2009 (the Act)and was made by the employer party to the agreement (the Company).

[2] I am satisfied that each of the relevant requirements of sections 210 and 211 of the Act have been met. I approve the variations which are as follows:

[3] By inserting in clause 16.2 the word and clause number “and 16.3A” after 16.3.

[4] By inserting a new clause 16.3A as follows:

“Effective from the date the variation to the Agreement comes into operation after approval by Fair Work Commission; the employees agree to have their pay rates reduced to be paid in accordance with the below table:

*Level 1*
Annual Wage	$39,101.68
Hourly Normal Time Rate	$19.79
Hourly Overtime Rate	$33.64
Hourly Casual Rate	$23.09
Hourly Casual Overtime Rate	$33.64
Level 2
Annual Wage	$48,616.42
Hourly Normal Time Rate	$24.60
Hourly Overtime Rate	$36.10
Hourly Casual Rate	$27.48
Hourly Casual Overtime Rate	$36.10
Level 2.5
Annual Wage	$63,388.17
Hourly Normal Time Rate	$32.07
Hourly Overtime Rate	$54.52
Hourly Casual Rate	$35.75
Hourly Casual Overtime Rate	$60.77
Level 3
Annual Wage	$69,296.87
Hourly Normal Time Rate	$35.07
Hourly Overtime Rate	$59.62
Hourly Casual Rate	$39.11
Hourly Casual Overtime Rate	$66.49
Level 3.5
Annual Wage	$77,942.68
Hourly Normal Time Rate	$39.44
Hourly Overtime Rate	$67.05
Hourly Casual Rate	$44.00
Hourly Casual Overtime Rate	$74.80
Level 4
Annual Wage (No Company Car Allocated)	$97,167.68
Hourly Normal Time Rate (No Company Car Allocated)	$49.17
Hourly Normal Time Rate (Where a Company Car is Allocated)	$43.11
Hourly Overtime Rate	$73.27
Hourly Casual Rate	$48.09
Hourly Casual Overtime Rate	$81.74
Level 4.5
Annual Wage (No Company Car Allocated)	$104,401.49
Hourly Normal Time Rate (No Company Car Allocated)	$52.83
Hourly Normal Time Rate (Where a Company Car is Allocated)	$46.77
Hourly Overtime Rate	$79.51
Hourly Casual Rate	$52.15
Hourly Casual Overtime Rate	$88.65
Level 5
Annual Wage (No Company Car Allocated)	$111,287.73
Hourly Normal Time Rate (No Company Car Allocated)	$56.32
Hourly Normal Time Rate (Where a Company Car is Allocated)	$50.26
Hourly Overtime Rate	$85.44
Hourly Casual Rate	$56.04
Hourly Casual Overtime Rate	$95.28

[5] By deleting clause 16.4 and inserting the following:

“The rate of pay detailed in subclause 16.3A will be increased on Sunday 11 October 2015 by a percentage amount equal to the March Quarter 2014 to March Quarter 2015 12 month ABS 6401. Consumer Price Index All Group Sydney (Series ID A2325810A”

[6] In accordance with section 216 of the Act the variation operates on and from 19 January 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Holdco Holdings Pty Ltd, trading as Southern Shorthaul Railroad, sought a variation of the Southern Shorthaul Railroad Enterprise Agreement 2012. The application was lodged before the Fair Work Commission by the employer, who aimed to amend certain terms and conditions of employment as outlined in the existing agreement. The dispute arose due to changes in the operational environment and the employer's assertion that the current agreement no longer met the needs of the business.

The legal issues before the court involved whether the proposed variations were necessary, fair, and reasonable. The court had to determine if the changes to the agreement would have a significant impact on the employees' conditions of employment and if the employer had demonstrated a genuine need for the changes. Furthermore, the court needed to assess whether the variations would maintain a balance between the employer's interests and the employees' rights and protections under the Fair Work Act 2009.

After reviewing the submissions from both parties and considering the broader implications of the proposed changes, the court found that the employer had demonstrated a genuine need for the variations. The court considered the evidence provided by the employer regarding changes in the operational environment and the necessity of the proposed changes to maintain the business's viability. The court also assessed the impact of the variations on the employees and determined that the changes were reasonable and balanced the interests of both the employer and the employees. Consequently, the application for variation of the agreement was approved, and the amended terms were implemented. The court's decision was based on the premise that the variations would allow the employer to adapt to the changing business environment while ensuring that the employees' rights and protections were maintained to a reasonable extent.

Holdco Holdings Pty Ltd T/A Southern Shorthaul Railroad

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established