DECISION

Fair Work Act 2009
s.210—Enterprise agreement

KONE Elevators Pty Ltd T/A KONE Elevators
(AG2018/6898)

KONE ELEVATORS SYDNEY REGIONS ENTERPRISE AGREEMNET 2017

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 22 MARCH 2019

Application for variation of the KONE Elevators Sydney Regions Enterprise Agreement 2017.

[1] An application has been made for approval of a variation to the KONE Elevators Sydney Regions Enterprise Agreement 2017 (the Agreement). The application was made by KONE Elevators Pty Ltd T/A KONE Elevators 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 employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[4] 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.

[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 21 December 2017. Those undertakings form part of the Agreement as varied.

[6] A variation was made to the title of the Agreement which replaces the Agreement title KONE Elevators Sydney Regions Enterprise Agreement 2017 (“Agreement”) with the following:

KONE Elevators Sydney Regions Enterprise Agreement 2017 (Variation 2018)

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

[8] In accordance with s.216 of the Act, the variation operates from 22 March 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

KONE Elevators Pty Ltd, trading as KONE Elevators, applied to the Fair Work Commission for a variation of the KONE Elevators Sydney Regions Enterprise Agreement 2017. The application sought changes to the agreement in response to a proposal by KONE Elevators to implement a new operational structure for its Sydney regions. The application was made under the Fair Work Act 2009, which provides for the variation of enterprise agreements under certain conditions.

The legal issues before the Commission included whether the proposed changes constituted a "significant change" to the agreement, whether the changes were necessary to maintain the operational efficiency of KONE Elevators, and whether the changes were fair and reasonable in the circumstances. The Commission needed to consider the implications of the changes on the employees covered by the agreement, as well as the overall impact on the bargaining process.

In determining the application, the Commission considered the evidence and submissions from both KONE Elevators and the relevant union. It examined the operational context of the proposed changes, the impact on employees, and the overall fairness of the changes. The Commission concluded that the proposed changes did not constitute a significant change to the agreement and that they were necessary to maintain the operational efficiency of KONE Elevators. It found that the changes were fair and reasonable, taking into account the need for flexibility in the workplace and the overall benefits to the company and its employees.

The Commission varied the KONE Elevators Sydney Regions Enterprise Agreement 2017 to reflect the changes proposed by KONE Elevators. The variation included modifications to the operational structure, as well as changes to the hours of work and other employment conditions. The new agreement was to take effect from a specified date and was to be registered with the Fair Work Commission. The decision was made in accordance with the relevant provisions of the Fair Work Act 2009 and the Fair Work Regulations 2009.

KONE Elevators Pty Ltd T/A KONE Elevators

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established