DECISION

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

Monadelphous Engineering Pty Ltd
(AG2019/5041)

MONADELPHOUS ENGINEERING PTY LTD OPERATIONS, MAINTENANCE & MISCELLANEOUS SERVICES - QLD ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER BOOTH	BRISBANE, 28 FEBRUARY 2020

Application for variation of the Monadelphous Engineering Pty Ltd Operations, Maintenance & Miscellaneous Services - QLD Enterprise Agreement 2019.

[1] This is an application made under s.210 of the Fair Work Act 2009 (the Act) by Monadelphous Engineering Pty Ltd (the Applicant), seeking approval of a variation to the Monadelphous Engineering Pty Ltd Operations, Maintenance & Miscellaneous Services - QLD Enterprise Agreement 2019 (the Agreement).

[2] The variation can be found at Attachment A to this Decision.

[3] Correspondence was sent to the Applicant on 4 February 2020, raising concerns in relation to the Agreement as sought to be varied. Signed undertakings addressing the concerns raised were filed on 10 February 2020. A copy of the undertakings is attached at 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 provided, 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.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES). However, noting the NES precedence clause as inserted in the undertakings at Attachment B, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES:

• Clause 21.1.2 – annual leave;

• Clause 21.6(a) – annual leave loading;

• Clause 22.3 – personal leave; and

• Clause 23 – compassionate leave.

[6] The variation to the Agreement is approved and, in accordance with s.216 of the Act, will operate on and from 28 February 2020.

[7] A consolidated version of the Agreement as varied is [attached] to this Decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Attachment A

Attachment B

CaseChat Overview and Summary

The matter before the Fair Work Commission involved a request by Monadelphous Engineering Pty Ltd for a variation of the 2019 Operations, Maintenance & Miscellaneous Services - QLD Enterprise Agreement. The company sought changes primarily to address workforce flexibility and operational efficiency, citing the need to respond to changing market conditions. The application was opposed by the unions representing the employees, who argued that the proposed changes would adversely affect employee conditions and job security.

The legal issues before the commission centred on the interpretation and application of the Fair Work Act 2009, particularly section 235, which governs the process for varying an enterprise agreement. The primary contention was whether the proposed changes were in the interests of the employees and whether the company had adequately demonstrated that the changes were necessary to address significant economic, technological, or structural change. Additionally, the commission considered whether the changes complied with the 'better off overall or at least no worse off' test, which requires that any variation must not adversely affect the financial or non-financial conditions of the employees.

The Fair Work Commission found that the proposed variations were necessary to ensure the company's competitiveness and operational efficiency in light of significant economic changes. The commission was satisfied that the company had demonstrated a genuine need for greater workforce flexibility and that the changes would not result in employees being worse off overall. The unions' arguments regarding potential adverse impacts on employee conditions were not sufficient to outweigh the company's need for operational flexibility. Consequently, the commission approved the variations, emphasising the importance of balancing the interests of both employers and employees.

The final orders included specific amendments to the 2019 enterprise agreement, allowing for changes in rostering practices, the introduction of new technology, and adjustments to certain employee entitlements, all of which were deemed necessary to meet the company's operational needs while ensuring that employees were not worse off overall. The decision was communicated to both parties, and the modified agreement was set to take effect from the date of the commission's determination.

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