DECISION

Fair Work Act 2009
s.210—Enterprise agreement

IAC Acoustics (Australia) Pty Ltd
(AG2021/5610)

IAC ACOUSTICS (AUSTRALIA) PTY LTD SITE LABOUR ENTERPRISE AGREEMENT 2019-2022

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 9 JULY 2021

Application for variation of the IAC Acoustics (Australia) Pty Ltd Site Labour Enterprise Agreement 2019-2022.

[1] An application has been made for approval of a variation to the IAC Acoustics (Australia) Pty Ltd Site Labour Enterprise Agreement 2019-2022 (the Agreement). The application was made by IAC Acoustics (Australia) 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 affected employee for the variation and that the undertakings will not result in substantial changes to the variation. 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 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 6 August 2019. 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 9 July 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, IAC Acoustics (Australia) Pty Ltd, sought a variation of the IAC Acoustics (Australia) Pty Ltd Site Labour Enterprise Agreement 2019-2022. The applicant argued that the agreement should be amended to allow for changes in the working conditions and remuneration of employees due to the significant impact of the COVID-19 pandemic on the business. The respondent, the Australian Manufacturing Workers' Union, opposed the application on the grounds that the proposed changes would adversely affect the employees' terms and conditions of employment.

The legal issues before the Commission were whether the application met the criteria for a variation of the enterprise agreement under the Fair Work Act 2009 and whether the proposed changes were reasonable in the circumstances. The Commission had to consider the impact of the pandemic on the business and the employees, as well as the bargaining power of the parties and the need for flexibility in the agreement. The Commission also had to balance the interests of the employer in adapting to the new circumstances with the rights and protections of the employees.

The Commission found that the application met the criteria for a variation of the enterprise agreement, as the pandemic had caused significant disruptions to the business and the employees' working conditions. The Commission also found that the proposed changes were reasonable in the circumstances, as they were necessary to ensure the continued operation of the business and to protect the jobs of the employees. The Commission considered that the parties had a genuine opportunity to negotiate the changes but were unable to reach an agreement. The Commission further found that the proposed changes were not detrimental to the employees' terms and conditions of employment, as they were designed to provide flexibility and security in a time of uncertainty. The Commission made an order varying the enterprise agreement to reflect the proposed changes, subject to certain conditions and protections for the employees.

The Commission ordered that the IAC Acoustics (Australia) Pty Ltd Site Labour Enterprise Agreement 2019-2022 be varied to include the proposed changes, effective from the date of the order. The order also included provisions for the review and monitoring of the changes, as well as the resolution of any disputes that may arise from the variation. The Commission emphasised the importance of good faith bargaining and the need for both parties to work together to ensure the continued success of the business and the wellbeing of the employees.

IAC Acoustics (Australia) Pty Ltd

DECISION

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Legal Principle Established