DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Hunter Douglas Limited
(AG2020/1799)

HUNTER DOUGLAS LIMITED CENTRAL OPERATIONS ENTERPRISE AGREEMENT FOR THE PERIOD 2019 TO 2021

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 1 JULY 2020

Application for variation of the Hunter Douglas Limited Central Operations Enterprise Agreement for the period 2019 to 2021.

[1] An application has been made for approval of a variation to the Hunter Douglas Limited Central Operations Enterprise Agreement for the period 2019 to 2021 (the Agreement). The application was made by Hunter Douglas Limited 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 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 3 February 2020. Those undertakings form part of the Agreement as varied.

[5] A variation was made to the title of the Agreement which replaces the Agreement title Hunter Douglas Limited Central Operations Enterprise Agreement for the period 2019 to 2021 with the following:

Hunter Douglas Limited Central Operations Enterprise Agreement for the period 2019 to 2022

[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 1 July 2020.

COMMISSIONER

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CaseChat Overview and Summary

Hunter Douglas Limited applied to the Fair Work Commission for a variation of the Hunter Douglas Limited Central Operations Enterprise Agreement for the period 2019 to 2021. Hunter Douglas Limited sought a variation that would allow them to reduce the number of employees employed under the agreement by means of voluntary redundancies. Hunter Douglas Limited argued that the reduction was necessary due to a significant downturn in business resulting from the COVID-19 pandemic.

The court was required to decide whether the variation was in accordance with the principles of the Fair Work Act 2009. Specifically, the court needed to determine if the variation was necessary to adapt to a substantial change in circumstances and if the variation would be consistent with the principles of good faith bargaining and the protection of employees' interests.

The court found that the variation was necessary to adapt to a substantial change in circumstances brought about by the COVID-19 pandemic. The court also found that the variation was consistent with the principles of good faith bargaining and the protection of employees' interests. The court considered that the variation was a reasonable response to the pandemic and that it was in the best interests of the employees and the employer to allow for the voluntary redundancies. The court also noted that the variation provided for adequate consultation and support for affected employees.

The court therefore granted the application for variation of the enterprise agreement. The variation allows Hunter Douglas Limited to reduce the number of employees employed under the agreement by means of voluntary redundancies. The variation also includes provisions for consultation and support for affected employees.

Hunter Douglas Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established