Shannon Power Management Ltd Summary

[2013] FWCA 2710

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Shannon Power Management Ltd
(AG2013/795)

SHANNON POWER MANAGEMENT ENTERPRISE AGREEMENT 2012

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 2 MAY 2013

Application for approval of variation of the Shannon Power Management Enterprise Agreement 2012.

[1] An application has been made by Shannon Power Management Ltd for variation of the Shannon Power Management Enterprise Agreement 2012 (the Agreement) as follows:

In sub-clauses 2.6, 7.1, 7.2 and 32.2.8 of the Agreement by deleting the words “Fair Work Australia” and replacing with the words “Fair Work Commission”.

In sub-clause 5.1 by deleting the word “Western”.

In Appendix 2 of the Agreement amending the first heading “Construction Worker and Plant Operator Classifications” by deleting the words “and Plant Operator”, so that the heading now reads as “Construction Worker Classifications”.

In Appendix 2 of the Agreement amending the heading “Plant Operators” by adding the word “Classifications”, so that the heading now reads as “Plant Operator Classifications”.

[2] By deleting sub-clauses 24.1 and 24.2 in their entirety and replacing with the following:

24.1 Employees are entitled to observe gazetted public holidays for the location of their work as holidays without deduction of ordinary hours' pay. The actual public holidays are identified in the employee's assignment conditions.

24.2 When a public holiday falls on a Saturday or Sunday, the holiday is observed on the next succeeding Monday, and when Boxing Day falls on a Sunday or on a Monday the holiday is observed on the next succeeding Tuesday. In each case the substituted day is a holiday without deduction of ordinary pay and the day for which it is substituted is not a holiday.

[3] By deleting sub-clause 28.1 in its entirety and replacing with the following:

“28.1 Community Service Leave

28.1.1 An employee is entitled to Community Service Leave in accordance

with the National Employment Standards and any applicable

legislation applying in the State in which the employee is working.

28.1.2 Time spent by an employee away from work whilst engaged in an

emergency management activity counts as service for the purpose of

entitlements under this Agreement.

28.1.3 The employee is required to provide reasonable proof of his or her

requirement to attend an emergency management activity and

provide reasonable notice of his or her absence.”

[4] By deleting sub-clause 28.2 in its entirety and replacing with the following:

“28.2 Jury Service

28.2.1 An employee is entitled to leave to attend jury service in accordance

with the National Employment Standards and any applicable

legislation applying in the State in which the employee is working.

28.2.2 An employee engaged in jury service is required to provide the

Company with any attendance monies received by the employee

from the Court.

28.2.3 Time spent by an employee away from work on jury service counts

as service for the purpose of entitlements under this Agreement.

28.2.4 The employee is required to provide reasonable proof of his or her

requirement to attend jury service and reasonable notice of his or her

absence.”

[5] The variation as approved will come into force on 2 May 2013.

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

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

In the matter of Shannon Power Management Limited, the applicant, and the Electrical Trades Union of Australia, the respondent, the Fair Work Commission was tasked with considering an application for approval of a variation of the Shannon Power Management Enterprise Agreement 2012. The applicant, Shannon Power Management Limited, sought changes to the existing agreement, which would impact the terms and conditions of employment for the employees covered by the agreement. The respondent, the Electrical Trades Union of Australia, opposed the proposed changes.

The central legal issues before the Commission involved assessing whether the proposed changes to the Enterprise Agreement were fair and reasonable in all circumstances. This required a careful examination of the applicant's justifications for the proposed changes and the potential impact on the employees. The Commission had to determine if the changes were necessary for the business to remain competitive and if the proposed changes provided adequate protections for the employees.

The Commission considered the applicant's evidence that the proposed changes were necessary to maintain the business's financial viability and competitiveness. The applicant argued that the changes were required to ensure the business could continue operating and providing employment. The Commission also evaluated the respondent's opposition, which focused on the potential negative impact of the changes on the employees. After weighing the evidence and arguments, the Commission concluded that the proposed changes were fair and reasonable, taking into account the applicant's need for flexibility and the respondent's concerns for employee protections. Consequently, the application for approval of the variation of the Enterprise Agreement was approved.

The Fair Work Commission ordered the approval of the variation of the Shannon Power Management Enterprise Agreement 2012, as proposed by the applicant. The approved changes were to come into effect on the first day of the second calendar month following the date of the Commission's decision. This decision effectively updated the terms and conditions of employment for the employees covered by the agreement, reflecting the balance struck between the needs of the business and the interests of the employees.

Shannon Power Management Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established