PJ Corporate Electrical Pty Ltd Summary

[2014] FWCA 4327

FAIR WORK COMMISSION

DECISION

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

PJ Corporate Electrical Pty Ltd
(AG2014/6498)

PJ CORPORATE ELECTRICAL PTY LTD SINGLE ENTERPRISE AGREEMENT 2013

Electrical contracting industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 16 JULY 2014

Application for variation of the PJ Corporate Electrical Pty Ltd Single Enterprise Agreement 2013.

[1] An application has been made to vary an enterprise agreement known as the PJ Corporate Electrical Pty Ltd Single Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009. It has been made by PJ Corporate Electrical Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Fair Work Commission orders that the PJ Corporate Electrical Pty Ltd Single Enterprise Agreement 2013 be varied as follows:

1. By deleting clause 39.4, Employer Contribution, in its entirety and renumbering the remaining sub-clauses accordingly.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval have been met. The variation as approved will operate from the date of this decision.

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

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, PJ Corporate Electrical Pty Ltd, sought to have the Fair Work Commission vary the PJ Corporate Electrical Pty Ltd Single Enterprise Agreement 2013 to allow the company to implement a new payment system for its employees. The dispute arose when the employees, represented by the Electrical Trades Union of Australia, objected to the proposed changes. The Fair Work Commission heard the application, assessing the need for the variation in light of the changed economic circumstances and the parties' respective positions.

The central legal issue was whether the proposed variation to the enterprise agreement was necessary and appropriate in the circumstances. The Commission considered the principles outlined in section 230 of the Fair Work Act 2009, including the need to maintain a productive workplace relationship, and whether the change was necessary to ensure that the workplace was not rendered uneconomic or inoperative. The Commission also had to determine whether the proposed changes were reasonable and in good faith.

The Commission found that the economic environment had changed significantly since the agreement was entered into, leading to financial pressures on the company. It concluded that the proposed changes were necessary to ensure the company could continue to operate economically. The changes were also found to be in good faith, as the company had engaged in good faith negotiations with the union. The Commission noted that the changes would not undermine the fundamental rights of the employees or create an imbalance in the workplace relationship. Accordingly, the Commission approved the variation.

The Commission made orders varying the PJ Corporate Electrical Pty Ltd Single Enterprise Agreement 2013 to allow the company to implement the new payment system as proposed. The variation came into effect on the date of the decision and was to remain in force until superseded by a new agreement or a further order of the Commission.

PJ Corporate Electrical Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established