DECISION

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

RCR O'Donnell Griffin Pty Ltd
(AG2014/8108)

O'DONNELL GRIFFIN PTY LTD & CEPU ELECTRICAL DIVISION QUEENSLAND ENERPRISE AGREEMENT 2012 - 2015

Electrical contracting industry
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 20 NOVEMBER 2014

Application for variation of the O'Donnell Griffin Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015.

[1] An application pursuant to s.210 of the Fair Work Act 2009 has been made by RCR O'Donnell Griffin Pty Ltd (“the Employer”) for the approval of a variation to the O'Donnell Griffin Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015 (“the Agreement”).

[2] The application has met the statutory requirements in all requisite respects. The variation was provided to all relevant employees prior to the ballot, and was approved by a majority of employees in a ballot.

[3] The Agreement is varied as follows:

(a) In clause 1.6.2, by deleting subclause (x) “Mackay Coal Work Division means work carried out on Coal Mines in the Bowen Basin.”

(b) In Appendix 1, by deleting the “Mackay Work Division Wages Rates” table.

[4] The consultation clause in the Agreement does not conform with s.205 of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Regulations is taken to be a term of the Agreement.

[5] The variation is approved and will come into operation on 20 November 2014.

[6] A consolidated copy of the Agreement is attached to this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, RCR O'Donnell Griffin Pty Ltd, applied for a variation of the O'Donnell Griffin Pty Ltd & CEPU Electrical Division Queensland Enterprise Agreement 2012 - 2015. The applicant sought to reduce the penalty rates of certain employees, arguing that changes in industry conditions justified the revision. The CEPU Electrical Division opposed the application, contending that the proposed changes would negatively impact employee remuneration and conditions without substantial justification.

The primary legal issues revolved around whether the applicant had demonstrated sufficient grounds for the proposed changes in penalty rates, and whether these changes were necessary and fair in light of the current industrial landscape. The court needed to assess the applicant's justification for the variations, the potential impact on the employees, and whether the changes complied with the principles of good faith bargaining and fairness. The applicant had to show that the variations were a reasonable response to changes in industry conditions, while the union argued that the changes would disproportionately affect employee entitlements without clear benefits to the business.

The commission considered the evidence presented by both parties and evaluated the changes in industry conditions and their impact on the business. The court determined that the applicant had not sufficiently demonstrated that the proposed changes were necessary or fair. The commission found that the applicant's justification for reducing penalty rates did not outweigh the detrimental effects on employee conditions. Consequently, the application for variation was dismissed. The commission upheld the existing agreement terms, ensuring that employee entitlements remained protected under the current conditions.

RCR O'Donnell Griffin 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