Infront Electrics P/L ATF The Infront Trading Trust

Case [2020] FWCA 6672


[2020] FWCA 6672
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.210—Enterprise agreement

Infront Electrics P/L ATF The Infront Trading Trust
(AG2020/2816)

INFRONT ELECTRICS ENTERPRISE AGREEMENT 2019 - 2023

Electrical contracting industry

DEPUTY PRESIDENT MASSON

MELBOURNE, 11 DECEMBER 2020

Application for variation of the Infront Electrics Enterprise Agreement 2019-2023.

[1] An application has been made for approval of a variation to the Infront Electrics Enterprise Agreement 2019-2023. (the Agreement). The application was made by Infront Electrics P/L ATF The Infront Trading Trust 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 11 December 2020.

DEPUTY PRESIDENT

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<AE505949  PR725346>

Details
AGLC
Infront Electrics P/L ATF The Infront Trading Trust [2020] FWCA 6672
Case
[2020] FWCA 6672
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, the applicant Infront Electrics P/L ATF The Infront Trading Trust sought a variation of the Infront Electrics Enterprise Agreement 2019-2023. The applicant argued that due to significant financial losses incurred during the COVID-19 pandemic, it was necessary to revise certain terms of the agreement to ensure the business's survival. The dispute centred on modifications to employee remuneration, hours of work, and redundancy provisions. The legal issues before the court involved determining whether the proposed changes were reasonable in the circumstances and whether they complied with the relevant legislative framework, specifically the Fair Work Act 2009.

The court examined the evidence presented by both parties regarding the financial impact of the pandemic on the business and the necessity of the proposed changes. The applicant demonstrated that the business had experienced a substantial decline in revenue, leading to a critical financial situation. The applicant argued that the proposed changes were essential to address this situation and to prevent potential redundancies. The court considered the principle of proportionality and whether the changes were necessary and reasonable in the context of the pandemic's effects. The court also assessed the procedural fairness of the application and whether the applicant had engaged in good faith with the relevant employee representatives.

After evaluating the evidence and arguments, the court determined that the proposed changes were necessary to address the financial crisis faced by the applicant. The court found that the changes were reasonable and proportionate to the circumstances and that the applicant had acted in good faith and engaged appropriately with the employee representatives. Consequently, the court approved the application for variation of the enterprise agreement, allowing for the revised terms to be implemented. The final orders confirmed the variation of specific clauses in the agreement to reflect the new conditions necessary for the business's survival.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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