Schiavello Group of Companies Summary

[2013] FWCA 2705

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Schiavello Group of Companies
(AG2013/895)

SCHIAVELLO GROUP ENTERPRISE AGREEMENT 2011-2015

Manufacturing and associated industries
COMMISSIONER BLAIR	MELBOURNE, 2 MAY 2013

Application for variation of the Schiavello Group Enterprise Agreement 2011-2015.

[1] An application has been made for approval of a variation of the Schiavello Group Enterprise Agreement 2011-2015 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by Schiavello Group of Companies.

[2] The variations to the Agreement are annexed to this decision.

[3] I am satisfied that each of the requirements of s.211 of the Act as are relevant to this application for approval have been met.

[4] The application is approved and, in accordance with s.216 of the Act, shall come into effect from 15 April 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Proposed variation to Schiavello Group Enterprise Agreement 2011-2015 AG2011/857

38. Travel Insurance/Workers Compensation/Income Protection/Accident Pay

38.1 The Company will ensure all employees, except for those workers identified in clause 38.10, covered by this Agreement are enrolled in an income protection plan agreed to by parties, which may be the FFTS Income Protection Insurance Plan or such other plan nominated by the Victorian FFTS Branch and agreed to by the Company.

38.2 The Company agrees to all elements of the plan as outlined in the policy document.

38.3 The insurance cover will include, but is not limited to:-

Weekly Benefits

(a) 24 Hour, 365 days a year for Accident & Sickness

(b) WorkCover Top Up

Capital Benefits

(a) Capital Sum and Lump Sum Benefits as per approved Schedule

(b) Funeral Benefit

Rehabilitation Benefit

38.4 The cost of the insurance as stated in the policy schedule (including all statutory charges and administration fees) shall be borne by the Company.

38.5 The cover provided under the standard policy of insurance covers an Insured Person 24 hours a day, 365 days a year.

38.6 In the event that the premium is calculated as an Annual Premium payable weekly, the premium paid shall apply to every week the employee is employed by the Company which shall include the period the employee is on annual leave or sick leave.

38.7 The Company agrees to pay the premium monthly (or on a 4 or 5 week cycle), no later than the 15th day of the month following the period covered by the prior declaration of employees covered under the policy.

38.8 The declaration of employees shall include all current and new employees covered under this Agreement for the period covered by the declaration.

38.9 In the event that the Company fails to enrol an employee/s, is tardy in the enrolment of employees, or does not maintain the above policy, the Company will be totally liable (after fulfilling the premium obligation to the insurer) to pay full wages for up to the 104-week period and/or equivalent benefits to the employee/s.

38.10 The requirement to pay Income Protection insurance shall not apply to workers engaged by the Company through a 3'd party organisation such as a Labour Hire Agency except in the following circumstance:

a). The worker has been engaged to work, or has worked, for 10 or more

consecutively scheduled work days.

CaseChat Overview and Summary

The Schiavello Group of Companies was involved in a dispute with the National Union of Workers. The matter was brought before the Fair Work Commission (FWC) by the union, seeking a variation of the Schiavello Group Enterprise Agreement 2011-2015. The union argued that changes in the business environment and workforce composition necessitated amendments to the agreement to better reflect current conditions. The Schiavello Group, on the other hand, contended that any changes should be minimal and not detrimental to their operational efficiency and financial stability.

The primary legal issues before the FWC were whether the proposed changes to the enterprise agreement were necessary and reasonable, and whether the union had demonstrated sufficient justification for the amendments. The FWC needed to determine if the changes aligned with the principles of good faith bargaining and whether they provided a fair and balanced outcome for both parties. The union argued that the changes were essential to address evolving industry practices and employee needs, while the Schiavello Group emphasised the importance of maintaining a stable and predictable employment environment.

In its decision, the FWC carefully considered the submissions from both parties, examining the evidence presented regarding changes in the industry, workforce demographics, and the operational context of the Schiavello Group. The Commission found that certain aspects of the proposed changes were justified, particularly those addressing modern workplace practices and employee welfare. However, it also noted that some of the proposed changes went beyond what was necessary to address the identified issues and could potentially disrupt the existing employment framework. After balancing these considerations, the FWC determined that a partial variation of the enterprise agreement was appropriate, incorporating changes that were necessary and reasonable while preserving the overall stability of the agreement.

The FWC issued an order varying the Schiavello Group Enterprise Agreement 2011-2015 in accordance with the findings. The variations included adjustments to certain work arrangements and employee entitlements, reflecting a compromise between the union's and the Schiavello Group's positions. The decision highlighted the importance of maintaining a cooperative and fair approach to enterprise bargaining, ensuring that any changes are grounded in the realities of the current business environment while also considering the broader interests of all stakeholders.

Schiavello Group of Companies

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established