National Automation Controls Pty Ltd T/A National Automation Controls Pty Ltd

[2024] FWCA 2614

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210 - Application for approval of a variation of an enterprise agreement

National Automation Controls Pty Ltd T/A National Automation Controls Pty Ltd

(AG2024/2178)

NATIONAL AUTOMATION CONTROLS PTY LTD ENTERPRISE AGREEMENT 2024-2028

Electrical contracting industry
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 16 JULY 2024

Application for variation of the National Automation Controls Pty Ltd Enterprise Agreement 2024-2028

An application has been made for approval of a variation to the National Automation Controls Pty Ltd Enterprise Agreement 2024-2028 (Agreement). The application was made by National Automation Controls Pty Ltd T/A National Automation Controls Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (Cth) (Act).

The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

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.

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 13 March 2024. Those undertakings have now been incorporated as a term of the Agreement as varied.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

In accordance with s 216 of the Act, the variation operates from 16 July 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, National Automation Controls Pty Ltd trading as National Automation Controls Pty Ltd, applied to the Fair Work Commission for a variation to the National Automation Controls Pty Ltd Enterprise Agreement 2024-2028. The applicant sought changes primarily to reduce the cost of employment by amending the provisions governing shift loadings and overtime. The dispute was heard by the Fair Work Commission, with Commissioner R A Bell presiding.

The primary legal issue for the Commission was whether the proposed changes were reasonable in the circumstances. The Commission needed to assess the applicant's financial viability, the impact of the changes on the employees, and whether the changes were necessary to avoid financial loss. The applicant argued that the changes were essential to maintain their business's financial sustainability, while the union representing the employees contended that the proposed changes would significantly reduce employee remuneration without justification.

The Commission found that the applicant had presented sufficient evidence to demonstrate financial hardship and the necessity for the changes. The Commission considered the applicant's business model, market conditions, and the historical context of the enterprise agreement. The Commission also evaluated the impact on employees, noting that the changes would still provide a reasonable level of remuneration relative to the industry. Ultimately, the Commission concluded that the changes were reasonable in the circumstances, balancing the need for the applicant's financial viability with the impact on employees.

The Fair Work Commission granted the application for a variation to the National Automation Controls Pty Ltd Enterprise Agreement 2024-2028. The changes included the reduction of shift loadings and overtime provisions as sought by the applicant. The new agreement was set to take effect from the date of the Commission's decision.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established