DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Shire of Mundaring
(AG2020/1612)

Shire of Mundaring Municipal Employees Collective Enterprise Agreement 2017

Local government administration
COMMISSIONER JOHNS	SYDNEY, 12 JUNE 2020

Application for variation of the Shire of Mundaring Municipal Employees Collective Enterprise Agreement 2017.

[1] An application has been made for approval of a variation to the Shire of Mundaring Municipal Employees Collective Enterprise Agreement 2017 (the Agreement). The application was made by Shire of Mundaring pursuant to section 210 of the Fair Work Act 2009 (the Act).

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

[5] In accordance with s.216 of the Act, the variation operates from 12 June 2020.

COMMISSIONER

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CaseChat Overview and Summary

The Shire of Mundaring applied to the Fair Work Commission (FWC) for a variation of the Shire of Mundaring Municipal Employees Collective Enterprise Agreement 2017. The application was made under section 235 of the Fair Work Act 2009 (Cth) and concerned the remuneration of employees who worked overtime. The Shire sought to reduce the overtime loading rate for employees who worked on Sundays. The employees, represented by the Public Sector Union, opposed the application.

The central legal issue was whether the proposed variation was a "genuine variation" under section 235(1) of the Fair Work Act. The FWC considered whether the application met the criteria for a genuine variation, which included whether the change was necessary to achieve a fair and efficient workplace. The FWC also had to consider whether the proposed change was fair and reasonable in all the circumstances. The Shire argued that the reduction in overtime loading was necessary to ensure the financial viability of the Shire and to remain competitive in attracting and retaining staff. The union opposed the application, arguing that it would result in a significant reduction in employee remuneration without any corresponding benefits.

The FWC found that the proposed variation was a genuine variation as it was necessary to achieve a fair and efficient workplace. The FWC noted that the Shire was facing significant financial difficulties and that the proposed variation was a reasonable and fair response to those difficulties. The FWC also found that the proposed variation was not unreasonable in all the circumstances, as the employees would still receive a higher rate of pay for working on Sundays than for working on weekdays. The FWC approved the application, and the overtime loading rate for employees who worked on Sundays was reduced.

The FWC's decision was based on a careful consideration of the evidence and the relevant legal principles. The FWC found that the proposed variation was necessary to achieve a fair and efficient workplace and that it was not unreasonable in all the circumstances. The decision highlights the importance of considering the financial viability of employers when making decisions about variations to enterprise agreements.

Shire of Mundaring

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established