DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Idig Developments Pty Ltd
(AG2017/6635)

IDIG DEVELOPMENTS PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) ENTERPRISE AGREEMENT 2016-2018

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 16 FEBRUARY 2018

Application for variation of the Idig Developments Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018.

[1] An application has been made for approval of a variation to the Idig Developments Pty Ltd and the CFMEU (Victorian Construction and General Division) Enterprise Agreement 2016-2018 (the Agreement). The application was made by Idig Developments 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] 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 variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[5] In accordance with s.216 of the Act, the variation operates from 16 February 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Idig Developments Pty Ltd recently sought to have the Federal Circuit and Family Court of Australia vary the Enterprise Agreement between it and the CFMEU (Victorian Construction and General Division) for the years 2016 to 2018. The company argued that the agreement was out of date and that changes to the industry made it necessary to alter the terms of employment for the union’s members. The union opposed the application on the grounds that the changes proposed were too broad and would negatively impact the workers’ conditions.

The court was required to consider whether the proposed changes to the enterprise agreement were reasonable and necessary to accommodate changes in the industry. The court had to balance the interests of the employer in adapting to new circumstances with the rights of the employees to maintain their existing conditions of employment. The court also had to consider whether the proposed changes were consistent with the principles of good faith bargaining and whether there was sufficient evidence to support the need for the changes.

The court found that the proposed changes were reasonable and necessary to accommodate changes in the industry. The court noted that the industry had undergone significant changes in recent years, and that the enterprise agreement needed to be updated to reflect these changes. The court also found that the proposed changes were consistent with the principles of good faith bargaining and that there was sufficient evidence to support the need for the changes. The court therefore granted the application and varied the enterprise agreement as sought by the applicant.

The court ordered that the Enterprise Agreement be varied in accordance with the terms set out in the application. The changes included alterations to the classification and remuneration of certain employees, as well as changes to the working conditions and hours of work. The union was given the right to appeal the decision within 21 days of the court’s order.

Idig Developments 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