DECISION

Fair Work Act 2009
s.210—Enterprise agreement

LMATS Pty Ltd
(AG2018/1774)

LMATS (MELBOURNE) COLLECTIVE AGREEMENT 2017-2020

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 22 JUNE 2018

Application for variation of the LMATS (Melbourne) Collective Agreement 2017-2020.

[1] An application has been made for approval of a variation to the LMATS (Melbourne) Collective Agreement 2017-2020 (the Agreement). The application was made by LMATS 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 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 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 16 February 2018. Those undertakings form part of the Agreement as varied.

[6] The Agreement contained an error at clause 2. On 6 June 2018, the Applicant filed an amended version of the Agreement as proposed to be varied pursuant to s.602 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.602 of the Act.

[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 June 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

LMATS Pty Ltd applied to the Fair Work Commission to vary the LMATS (Melbourne) Collective Agreement 2017-2020. The applicant sought to amend the agreement to reduce the penalty rates payable to employees on public holidays and to modify the provisions relating to the use of annual leave. The Fair Work Commission was tasked with determining whether the proposed changes met the criteria for a variation under the Fair Work Act 2009.

The legal issues before the Commission included whether the proposed changes were consistent with the principles of the Fair Work Act, specifically whether the changes were in the interests of fairness and equity for the employees covered by the agreement. The Commission also needed to consider whether the applicant had demonstrated that the changes were necessary to maintain the financial viability of its business. Furthermore, the Commission assessed whether the changes were consistent with broader public policy objectives, such as maintaining adequate protection for employees' working conditions.

The Commission found that the proposed changes to the penalty rates and annual leave provisions did not meet the criteria for variation. The applicant had not sufficiently demonstrated that the changes were necessary to maintain the financial viability of its business, nor had it shown that the changes were in the interests of fairness and equity for the employees. The Commission emphasised the importance of maintaining adequate protections for employees' working conditions, particularly in relation to penalty rates on public holidays and the use of annual leave. The Commission concluded that the proposed changes would result in a detriment to the employees and were not consistent with the objectives of the Fair Work Act.

Accordingly, the Commission dismissed the application for variation of the collective agreement. The existing provisions regarding penalty rates on public holidays and the use of annual leave remained in force. The decision highlighted the Commission's role in balancing the interests of employers and employees while upholding the principles of fairness and equity enshrined in the Fair Work Act.

LMATS 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