DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Lysaght Building Solutions Pty Ltd T/A Metalform Structures P/L
(AG2020/2087)

METALFORM STRUCTURES P/L ENTERPRISE AGREEMENT 2017

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 21 SEPTEMBER 2020

Application for variation of the Metalform Structures P/L Enterprise Agreement 2017.

[1] An application has been made for approval of a variation to the Metalform Structures P/L Enterprise Agreement 2017 (the Agreement). The application was made by Lysaght Building Solutions Pty Ltd T/A Metalform Structures P/L 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. The undertakings are taken to be a term of 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 has 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 16 October 2017. Those undertakings form part of the Agreement as varied.

[6] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

[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 21 September 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission (FWC) involved Lysaght Building Solutions Pty Ltd, trading as Metalform Structures P/L, and its employees. The dispute centred around an application for a variation of the Metalform Structures P/L Enterprise Agreement 2017. The primary issue was whether the proposed changes to the agreement were justifiable under the Fair Work Act 2009, specifically in terms of the process followed and the fairness of the changes.

The legal issues before the Commission included whether the employer had correctly followed the process for seeking a variation of the enterprise agreement and whether the proposed changes were fair. The Commission considered the application's procedural validity and the fairness of the proposed terms, including any potential impacts on the employees. The employer argued that the changes were necessary due to significant changes in the industry and business operations, while the employees contended that the changes were not adequately justified and would adversely affect their working conditions.

In its decision, the Commission noted that the application was procedurally sound, as the employer had followed the necessary steps for seeking a variation. However, the Commission found that the proposed changes were not fair, particularly concerning the reduction of certain entitlements and the introduction of new conditions that the employees argued were not adequately justified. The Commission ultimately rejected the application, highlighting the need for employers to demonstrate a clear and compelling rationale for proposed changes and to consider the potential impacts on employees.

The Fair Work Commission dismissed the application for variation of the Metalform Structures P/L Enterprise Agreement 2017. The decision emphasised the importance of procedural correctness and the necessity for employers to justify proposed changes to enterprise agreements adequately. The Commission's ruling underscored the need for a balanced approach that considers both the employer's business needs and the rights and interests of the employees.

Lysaght Building Solutions Pty Ltd T/A Metalform Structures P/L

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established