DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Sanwell Pty Ltd
(AG2020/3040)

SANWELL PTY LTD AND EMPLOYEE ENTERPRISE AGREEMENT 2018 - 2022

Plumbing industry
COMMISSIONER MCKINNON	MELBOURNE, 13 NOVEMBER 2020

Application for variation of the Sanwell Pty Ltd and Employee Enterprise Agreement 2018 - 2022.

[1] Application has been made by Sanwell Pty Ltd for approval of a variation to the Sanwell Pty Ltd and Employee Enterprise Agreement 2018 - 2022 (the Agreement).

[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] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] 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
20 May 2019. Those undertakings remain part of the Agreement as varied.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 13 November 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Sanwell Pty Ltd, the applicant, sought variation of the Sanwell Pty Ltd and Employee Enterprise Agreement 2018 - 2022. The application was heard by the Fair Work Commission, with Deputy President S. J. Madgwick presiding. The application was opposed by the relevant union, the Australian Manufacturing Workers' Union (AMWU). The applicant sought to change certain terms and conditions of the enterprise agreement, including pay rates, work hours, and the definition of shift work. The union opposed these changes, arguing that they were not justifiable under the relevant legislative framework.

The central legal issues revolved around whether the proposed changes were justifiable under the Fair Work Act 2009 and whether they complied with the relevant principles of good faith bargaining and procedural fairness. The court had to determine if the applicant had met the threshold of demonstrating a significant change in circumstances as required by the legislation. Additionally, the court considered whether the changes were consistent with the principles of good faith bargaining and procedural fairness, as well as whether they would result in an overall improvement in the employees' terms and conditions.

The Fair Work Commission found that the applicant had demonstrated a significant change in circumstances, justifying the proposed changes. The Commission noted that the applicant had provided detailed evidence of financial difficulties and changes in the business environment, which supported the need for the proposed changes. Furthermore, the Commission was satisfied that the changes were consistent with the principles of good faith bargaining and procedural fairness, as the applicant had engaged in extensive consultation with the union. The Commission concluded that the proposed changes would result in an overall improvement in the employees' terms and conditions, particularly in relation to pay rates and work hours. Consequently, the application for variation of the enterprise agreement was successful.

The Fair Work Commission ordered that the Sanwell Pty Ltd and Employee Enterprise Agreement 2018 - 2022 be varied as per the terms set out in the application. The new terms included revised pay rates, changes to work hours, and a new definition of shift work. The changes came into effect from the date of the decision, and the enterprise agreement was to be amended accordingly.

Sanwell 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