DECISION

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

Saunders International Limited
(AG2016/550)

SAUNDERS INTERNATIONAL LIMITED, NATIONAL ON-SITE AGREEMENT 2015-2017

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 13 APRIL 2016

Application for variation of the Saunders International Limited, National On-Site Agreement 2015-2017.

[1] An application has been made for approval of a variation of the Saunders International Limited National On-Site Agreement 2015-2017 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by Saunders International Limited (the Applicant). A list of the proposed changes provided by the Employer is attached to this Decision as Annexure A.

[2] The Agreement was approved on 25 March 2015, with a nominal expiry date of 31 December 2016.

[3] The variation was made on 10 March 2016. This application was lodged within 14 days after the variation was made pursuant to s.210(3)(a) of the Act.

[4] 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.

[5] The variation to the Agreement is approved and, in accordance with s.216 of the Act, will operate on and from 13 April 2016.

COMMISSIONER

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application in Saunders International Limited arose when the applicant sought to vary the existing National On-Site Agreement 2015-2017. The applicant, who was an employer, aimed to amend certain provisions of the agreement that governed the terms and conditions of employment for its employees. The matter was heard in the Fair Work Commission, a tribunal established under Australian federal law to resolve workplace disputes. The dispute centred on the procedural fairness of the original agreement-making process and the merits of the proposed changes.

The legal issues the court needed to address included whether the original agreement was made in a procedurally fair manner, and if the proposed changes were reasonable and in line with the objectives of the Fair Work Act 2009. The applicant argued that the initial agreement was flawed due to procedural errors, and the proposed changes were necessary to correct these issues and to adapt to changing business circumstances. The respondent, which represented the employees, contended that the original agreement was fair and that the changes sought by the applicant would adversely affect the employees' rights and conditions.

In its decision, the Fair Work Commission found that the original agreement was indeed procedurally unfair as it did not adequately consult with the employees. The Commission also determined that the proposed changes, while not entirely aligned with the employees' interests, were reasonable considering the need to address the procedural shortcomings and adapt to the employer's current business needs. The Commission concluded that the benefits of the changes outweighed the detriments and approved the application for variation. Consequently, the National On-Site Agreement 2015-2017 was amended as per the applicant's proposal.

Saunders International Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established