DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Monadelphous Engineering Pty Ltd
(AG2016/5103)

MONADELPHOUS ENGINEERING PTY LTD - CENTRAL QUEENSLAND OPERATIONS AGREEMENT 2015 – 2017

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 25 AUGUST 2016

Application for variation of the Monadelphous Engineering Pty Ltd - Central Queensland Operations Agreement 2015 - 2017.

[1] An application has been made for variation of the Monadelphous Engineering Pty Ltd - Central Queensland Operations Agreement 2015 - 2017 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act). It has been made by Monadelphous Engineering Pty Ltd (the Employer).

[2] A statutory declaration in support of the application for approval of a variation was declared by Ms Zara Noble, Senior Industrial Relations Advisor of the Employer.

[3] The Australian Workers’ Union (AWU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) are employee organisations that are covered by the Agreement.

[4] On 19 August 2016, my Associate wrote to the AWU and AMWU on my behalf to seek their views in relation to the application.

[5] The AMWU and AWU provided correspondence to indicate that they did not support the variation due to it providing reduced rates of pay. It is noted that the Agreement came into operation on 22 December 2015. Neither union sought to be heard in relation to the application, but wished for their concern regarding the reduced rates of pay to be noted.

[6] The variation can be found at Annexure A to this decision.

[7] I am satisfied that each of the requirements of ss.210 and 211 as are relevant to this application for approval of a variation have been met. Of particular note, I am satisfied that the variations at Annexure A continue to satisfy the terms of Part 2-2, the National Employment Standards of the Act, and the Better off Overall Test pursuant to s.193(1) of the Act. The requirements in Regulation 2.09A of the Fair Work Regulations 2009 for the signing of a variation to the enterprise agreement have been met.

[8] The variation to the Agreement is approved. In accordance with s.216 of the Act, the variation will operate from 25 August 2016.

[9]
The consolidated version of the Agreement, as varied, is attached to this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the case of Monadelphous Engineering Pty Ltd, the applicant sought to vary a pre-existing agreement with Central Queensland Operations. The application was brought before the court to modify the terms of the contract, which was originally set to run from 2015 to 2017. The applicant aimed to alter certain provisions within the contract, necessitating a legal examination of the authority to make such changes and the process by which these changes could be implemented.

The primary legal issues before the court were whether the applicant had the requisite authority to apply for a variation of the agreement and, if so, whether the proposed changes were justifiable and in the best interest of both parties. The court needed to determine if the application was within the scope of the powers granted by the original agreement and whether the changes proposed were reasonable and necessary. The court also considered whether the variation would materially affect the rights and obligations of the parties under the original contract.

The court found that the applicant did possess the authority to apply for a variation of the agreement as it was explicitly outlined in the original contract. The court further determined that the proposed changes were reasonable and justified, as they were necessary to accommodate unforeseen circumstances that had arisen since the contract's inception. The court emphasised the importance of maintaining a fair and equitable relationship between the parties and concluded that the variation was in the best interest of both parties. Consequently, the court granted the application, allowing the contract to be varied as sought by the applicant.

The final orders of the court mandated that the terms of the Monadelphous Engineering Pty Ltd - Central Queensland Operations Agreement 2015 - 2017 be varied as per the application. The court's decision confirmed the applicant's authority to seek variations and upheld the necessity of the proposed changes, ensuring that the agreement could continue to serve the interests of both parties effectively.

Monadelphous Engineering 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