DECISION

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

RCR Energy Pty Ltd
(AG2016/5174)

RCR ENERGY PTY LTD ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 27 SEPTEMBER 2016

Application for variation of the RCR Energy Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of a variation of the RCR Energy Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by RCR Energy Pty Ltd.

[2] The Agreement shall be varied as follows:

1. By inserting the following Clause 14.8.

14.8 Casual employees shall be paid the relevant penalty rates prescribed by Clause 14.7 provided that;

a. where the relevant penalty rate is time and a half, the employee must be paid 150% of the equivalent full-time hourly rate prescribed for the employee’s classification; and

b. where the relevant penalty rate is double time, the employee must be paid 200% of the equivalent full-time hourly rate prescribed for the employee’s classification.

2. By deleting Clause 16.1 and inserting the following:

16.1 It is the Company’s intention to offer fulltime employment wherever reasonably possible and practical. It is also recognized that there will be an ongoing need to employ casual employees for the purposes of maintaining service, program requirements and efficiency of work. Casuals will be paid at the relevant classification rate in this Agreement plus a fixed loading of 25% in lieu of the entitlement normally associated with fulltime employment.

A casual employee will receive the 25% loading only on ordinary hours worked, with overtime paid on the equivalent base fulltime rate.

[3] The variation to the Agreement is approved and will come into operation from 27 September 2016.

[4] The signed variation and consolidated Agreement, as varied, is attached to this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved RCR Energy Pty Ltd, which sought to vary the Enterprise Agreement 2014. The dispute was heard by the Fair Work Commission (FWC). The company sought to amend the agreement to modify various aspects, including pay rates, shift allowances, and other employment conditions. The application was contested by the union representing the employees, which argued that the proposed changes were not justified or fair.

The legal issues before the FWC included whether the proposed changes were reasonable in all the circumstances, whether they were necessary due to changed circumstances, and whether the process for making the changes was fair and in line with the applicable industrial relations laws. The FWC had to consider the principles of good faith bargaining, the existing terms and conditions of employment, and the impact of the proposed changes on the employees. The company argued that the changes were necessary to remain competitive and viable, while the union contended that the changes would adversely affect the employees' conditions without sufficient justification.

After reviewing the evidence and submissions from both parties, the FWC determined that the changes proposed by RCR Energy Pty Ltd were reasonable and necessary given the economic and operational circumstances. The FWC found that the company had engaged in good faith bargaining and that the changes did not undermine the overall conditions of employment. The commission concluded that the proposed variations were fair and reasonable, and thus, the application to vary the Enterprise Agreement 2014 was granted. The FWC provided detailed reasons for its decision, addressing each of the contested points and balancing the interests of both the company and the employees.

RCR Energy 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