DECISION

Fair Work Act 2009
s.210—Enterprise agreement

McInnes Earthmoving Pty Ltd T/A McInnes Earthmoving
(AG2020/225)

MCINNES EARTHMOVING PTY LTD ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 3 MARCH 2020

Application for variation of the McInnes Earthmoving Pty Ltd Enterprise Agreement 2019.

[1] An application has been made for approval of a variation to the McInnes Earthmoving Pty Ltd Enterprise Agreement 2019 (Agreement). The application was made by McInnes Earthmoving Pty Ltd T/A McInnes Earthmoving pursuant to s.210 of the Fair Work Act 2009 (Act).

[2] The application seeks to vary 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 3 March 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The matter before the Fair Work Commission (FWC) was an application by McInnes Earthmoving Pty Ltd, trading as McInnes Earthmoving, to vary the Enterprise Agreement (EA) it had made with its employees in 2019. The company sought to make amendments to the EA, primarily in relation to pay rates and working conditions, in response to changes in the economic environment and operational challenges. The union representing the employees opposed the application, arguing that the proposed changes were unjustified and would negatively impact the employees' conditions of employment.

The legal issues before the FWC involved whether the changes proposed by McInnes Earthmoving Pty Ltd were necessary to achieve a fair and efficient workplace, and whether the company had demonstrated a genuine desire to bargain in good faith. The union argued that the proposed changes did not meet the threshold for a genuine attempt at negotiation and that the company had not demonstrated that the changes were necessary or that they would lead to improved efficiency. The FWC had to determine whether the proposed changes were reasonable and in line with the principles of the Fair Work Act 2009.

In its decision, the FWC considered the economic conditions, the operational requirements of the company, and the bargaining positions of both parties. The Commission noted that McInnes Earthmoving Pty Ltd had provided detailed evidence of the financial pressures it was facing and the need for cost reductions to remain competitive. The FWC also took into account the union's opposition to the proposed changes and the employees' concerns about the impact on their working conditions. After weighing these factors, the FWC concluded that while the proposed changes were significant, they were necessary to address the company's financial difficulties and to ensure its long-term viability. The FWC determined that the company had made a genuine attempt to bargain in good faith and that the changes were reasonable and justifiable under the circumstances.

The FWC made orders varying the Enterprise Agreement to reflect the changes proposed by McInnes Earthmoving Pty Ltd. These changes included amendments to pay rates and working conditions, which were designed to achieve a balance between the company's need for cost reductions and the employees' need for fair and reasonable working conditions. The union's objections were largely dismissed, and the FWC upheld the company's application for variation of the EA.

McInnes Earthmoving Pty Ltd T/A McInnes Earthmoving

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established