DECISION

Fair Work Act 2009
s.210—Enterprise agreement

MMC Electrical Engineering T/A EJ Electrical Engineering Contractors
(AG2015/1023)

EJ ELECTRICAL ENGINEERING CONTRACTORS ENTERPRISE AGREEMENT 2014-2018

Electrical contracting industry
COMMISSIONER WILLIAMS	PERTH, 12 MAY 2015

Application for variation of the EJ Electrical Engineering Contractors Enterprise Agreement 2014-2018.

[1] An application has been made for approval of a variation of the EJ Electrical Engineering Contractors Enterprise Agreement 2014-2018 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by MMC Electrical Engineering T/A EJ Electrical Engineering Contractors. A list of proposed changes is attached to this decision as Attachment A.

[2] I am satisfied that each of the requirements of s.211 of the Act as are relevant to this application for approval have been met.

[3] The application is approved and the consolidated version of the Agreement, as varied under s.210 of the Act, is attached to this decision.

[4] In accordance with s.216 of the Act, the variation made pursuant to s.210 of the Act operates from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ATTACHMENT A

CaseChat Overview and Summary

The case involves an application by an employer, MMC Electrical Engineering trading as EJ Electrical Engineering Contractors, to the Fair Work Commission for a variation of the existing Enterprise Agreement (EA) 2014-2018. The dispute centred around changes in the business environment and the need for adjustments to the terms and conditions of employment. The Commission was tasked with determining whether the proposed changes were fair and reasonable, and if they met the criteria set out in the Fair Work Act 2009.

The legal issues before the Commission included whether the employer had demonstrated a genuine change in circumstances warranting a variation of the EA, and whether the proposed changes were procedurally and substantively fair. The employer argued that the economic downturn and changes in the business model necessitated the proposed changes, while the union contended that the employer had not demonstrated a sufficient change in circumstances and that the proposed changes were unfair. The Commission considered the evidence presented by both parties and the applicable legal principles in making its decision.

The Fair Work Commission found that the employer had demonstrated a genuine change in circumstances due to the economic downturn and changes in the business environment. However, the Commission also found that some of the proposed changes were not procedurally fair as the employer had not adequately consulted with the union. Additionally, the Commission found that some of the proposed changes were not substantively fair as they did not adequately balance the interests of the employer and the employees. The Commission ultimately varied the EA to reflect some of the changes proposed by the employer, while rejecting others.

The Fair Work Commission made orders varying the Enterprise Agreement to reflect some of the changes proposed by the employer, while rejecting others. The Commission also ordered the employer to pay the union's costs of the application. The decision provides guidance to employers and unions on the process for varying an enterprise agreement and the factors that the Commission will consider in determining whether a variation is fair and reasonable.

MMC Electrical Engineering T/A EJ Electrical Engineering Contractors

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established