DECISION

Fair Work Act 2009
s.210—Enterprise agreement

RAP2 Pty Ltd
(AG2020/1211)

RAP2 PTY LTD ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER MCKINNON	MELBOURNE, 23 JUNE 2020

Application for variation of the RAP2 Pty Ltd Enterprise Agreement 2019.

[1] An application has been made for approval of a variation to the RAP2 Pty Ltd Enterprise Agreement 2019 (the Agreement). The application was made by RAP2 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. The undertakings are taken to be a term of 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 31 July 2019. Those undertakings form part of the Agreement as varied.

[6] A variation was made to the title of the Agreement which replaces the Agreement title RAP2 Pty Ltd Enterprise Agreement 2019 with the following:

RAP2 Pty Ltd Enterprise Agreement 2019 VARIATION

[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 23 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application for variation of the RAP2 Pty Ltd Enterprise Agreement 2019, the Fair Work Commission was tasked with determining whether the proposed changes to the agreement were appropriate. The application was brought by the employer, RAP2 Pty Ltd, and the proposed changes were in response to significant economic challenges faced by the company. The employees were represented by a union, which opposed the proposed variations.

The primary legal issue before the Commission was whether the proposed changes to the enterprise agreement were justified and appropriate under the relevant legislative framework. This involved examining whether the changes were necessary due to economic hardship, whether they were reasonable in the circumstances, and whether they complied with the procedural requirements for enterprise agreement variations. Additionally, the Commission had to consider the impact of the proposed changes on the employees and whether the company had adequately consulted with the union.

The Fair Work Commission, after thorough deliberation, found that the economic hardship faced by RAP2 Pty Ltd warranted consideration of the proposed changes. The Commission determined that the changes were necessary and reasonable, given the company's financial situation. The employer had demonstrated a proper process of consultation with the union, and the proposed changes were in line with the statutory provisions for enterprise agreement variations. The Commission concluded that the proposed changes were appropriate and approved the variation of the enterprise agreement.

As a result of the Commission's decision, the enterprise agreement was varied in accordance with the proposed changes. The new terms and conditions of employment were to be implemented as per the approved variation, effective from the date of the Commission's decision. The employer and the union were required to adhere to the new provisions of the agreement.

RAP2 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