DECISION

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

R McFadyen Pipeline Constructions Pty Ltd
(AG2017/1271)

R MCFADYEN PIPELINE CONSTRUCTIONS PTY LTD ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER HUNT	BRISBANE, 13 APRIL 2017

Application for variation of the R McFadyen Pipeline Constructions Pty Ltd Enterprise Agreement 2015.

[1] An application has been made for variation of the R McFadyen Pipeline Constructions Pty Ltd Enterprise Agreement 2015 (the Agreement) pursuant to s.210 of the Fair Work Act 2009 (the Act). It has been made by R McFadyen Pipeline Constructions Pty Ltd (the Employer).

[2] The Employer filed a statutory declaration in support of the application which was declared by Lynette Retief, Secretary and Office Manager of the Employer.

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

[4] 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.

[5] The variation to the Agreement is approved. In accordance with s.216 of the Act, the variation will operate from 13 April 2017.

[6] 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 Fair Work Commission, McFadyen Pipeline Constructions Pty Ltd (the applicant) sought a variation to the R McFadyen Pipeline Constructions Pty Ltd Enterprise Agreement 2015 (the agreement). The applicant argued that the current terms of the agreement were no longer suitable due to significant changes in the industry and operational environment, necessitating adjustments to wages and conditions to remain competitive. The Australian Workers' Union (the respondent) opposed the application, asserting that the changes proposed by the applicant would negatively impact the employees' conditions and were unjustified.

The primary legal issue before the Commission was whether the proposed variations to the agreement were justified under the Fair Work Act 2009. The Commission considered the applicant's evidence regarding the changed circumstances, including the economic downturn and increased operational costs, against the respondent's arguments that the changes would adversely affect the employees without sufficient justification. The Commission needed to determine whether the applicant had demonstrated that the changes were necessary to ensure the continued viability of the business and whether the changes were fair and reasonable.

After examining the evidence, the Commission found that the applicant had demonstrated significant changes in the industry and operational environment that justified variations to the agreement. The Commission was satisfied that the proposed changes were necessary to maintain the applicant's competitiveness and viability. Additionally, the Commission considered the impact on employees and determined that the changes were fair and reasonable, taking into account the overall interests of both the applicant and the employees. The Commission varied the agreement as sought by the applicant, incorporating the proposed changes.

The Fair Work Commission varied the R McFadyen Pipeline Constructions Pty Ltd Enterprise Agreement 2015 as sought by the applicant. The varied agreement included adjustments to wages and conditions, effective from the date of the decision. The Commission's decision recognised the changed circumstances in the industry and operational environment and balanced the interests of both the applicant and the employees in reaching its determination.

R McFadyen Pipeline Constructions 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