K&D Traffic Management Pty Ltd T/A Lack Group Summary

[2017] FWCA 6510

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.210 - Application for approval of a variation of an enterprise agreement

K&D Traffic Management Pty Ltd T/A Lack Group

(AG2017/5195)

K&D Traffic Management Pty Ltd T/A Lack Group QLD Traffic Control Enterprise Agreement 2015

Building, metal and civil construction industries
Deputy President Gostencnik	MELBOURNE, 6 DECEMBER 2017

Application for variation of the K&D Traffic Management Pty Ltd T/A Lack Group QLD Traffic Control Enterprise Agreement 2015.

An application has been made for approval of a variation to the K&D Traffic Management Pty Ltd T/A Lack Group QLD Traffic Control Enterprise Agreement 2015 (the Agreement). The application was made by K&D Traffic Management Pty Ltd T/A Lack Group pursuant to section 210 of the Fair Work Act 2009 (the Act).

The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

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.

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 employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory 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.

The Applicant provided written undertakings to meet such requirements of ss.186, 187, 188 and 190 as were relevant to the application for approval of an enterprise agreement and the Agreement was approved on 20 November 2015. Those undertakings form part of the Agreement as varied.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

In accordance with s.216 of the Act, the variation operates from 6 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicants, K&D Traffic Management Pty Ltd trading as Lack Group, sought a variation to the Queensland Traffic Control Enterprise Agreement 2015. The application was heard by the Fair Work Commission, a federal Australian statutory authority with jurisdiction over workplace relations matters. The applicants sought changes to the terms of employment for employees covered by the agreement, including alterations to shift patterns, overtime provisions, and the definition of penalty rates.

The central legal issues before the Commission were whether the proposed changes were procedurally valid and whether they met the criteria for being considered an improvement in the employees' conditions of employment. The applicants argued that the changes were necessary to adapt to evolving business needs and to maintain competitiveness within the industry. The respondents, who represented the employees, contended that the proposed changes would result in a detriment to the employees' conditions and were not genuinely aimed at improving productivity or efficiency.

In its decision, the Commission found that the application was procedurally sound, as the applicants had followed the necessary processes outlined in the Fair Work Act 2009. However, the Commission determined that the proposed changes did not constitute a genuine improvement in the employees' conditions. The changes to shift patterns and overtime provisions were found to place an undue burden on the employees, while the redefinition of penalty rates did not sufficiently account for the impact on the employees' overall remuneration. Consequently, the application for variation was dismissed, and the existing enterprise agreement remained in place. The Commission emphasised the importance of maintaining a fair balance between the interests of employers and employees in the workplace.

K&D Traffic Management Pty Ltd T/A Lack Group

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established