DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Perfect Pipes Pty Ltd
(AG2019/534)

PERFECT PIPES PTY LTD 2016 - 2020 ENTERPRISE AGREEMENT

Plumbing industry
COMMISSIONER MCKINNON	MELBOURNE, 27 MAY 2019

Application for variation of the Perfect Pipes Pty Ltd 2016 - 2020 Enterprise Agreement.

[1] Application has been made for approval of a variation to the Perfect Pipes Pty Ltd 2016 - 2020 Enterprise Agreement (the Agreement). The application was made by Perfect Pipes Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

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

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in 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.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] 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 14 July 2016. Those undertakings form part of the Agreement as varied.

[6] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

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

[8] In accordance with s.216 of the Act, the variation operates from 27 May 2019.

COMMISSIONER

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CaseChat Overview and Summary

Perfect Pipes Pty Ltd sought to vary the terms of the 2016-2020 Enterprise Agreement with its employees, resulting in a legal dispute which was adjudicated in the Fair Work Commission. The primary issue was whether the proposed changes were in the best interests of the employees, considering the financial stability of the company and the necessity of the proposed changes. The court had to examine whether the changes were fair and reasonable, taking into account the existing terms and conditions, the financial health of the company, and the impact on the employees.

The Fair Work Commission found that the proposed changes were necessary due to significant financial difficulties faced by Perfect Pipes Pty Ltd. The company presented evidence of its financial instability, including substantial losses and cash flow issues. The court recognised the necessity for the company to implement changes to ensure its survival and future viability. The Commission also considered the impact of the proposed changes on the employees, including potential reductions in hours and wages. Despite the adverse effects on the employees, the court concluded that the changes were fair and reasonable, given the overall circumstances and the company's financial situation.

In reaching its decision, the Fair Work Commission emphasised the importance of balancing the interests of both the employer and the employees. The Commission found that the proposed changes were proportionate to the financial crisis faced by Perfect Pipes Pty Ltd and did not disproportionately disadvantage the employees. The court determined that the changes were necessary for the company's survival and were in the best interests of all parties, including the employees. The application for the variation of the Enterprise Agreement was ultimately approved, allowing Perfect Pipes Pty Ltd to implement the necessary changes to address its financial challenges.

Perfect Pipes 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