DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Silverstrand Developments Pty Ltd
(AG2018/200)

SILVERSTRAND DEVELOPMENTS PTY LTD ENTERPRISE AGREEMENT 2016 - 2020

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 20 MARCH 2018

Application for variation of the Silverstrand Developments Pty Ltd Enterprise Agreement 2016 - 2020.

[1] An application has been made for approval of a variation to the Silverstrand Developments Pty Ltd Enterprise Agreement 2016 - 2020 (the Agreement). The application was made by Silverstrand Developments Pty Ltd 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] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] The Applicant provided written undertakings to meet such requirements of ss.186, 187, 188 and 190 as were relevant to the application for approval of an enterprise agreement and the Agreement was approved on 28 April 2016. Those undertakings form part of the Agreement as varied.

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

[7] In accordance with s.216 of the Act, the variation operates from 20 March 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Silverstrand Developments Pty Ltd sought variation of the enterprise agreement with its employees. The case was heard by the Fair Work Commission. The primary dispute centred on the application by Silverstrand Developments Pty Ltd to modify the existing enterprise agreement to reduce the working hours of its employees, decrease their pay rates, and alter other conditions of employment. The applicants argued that the changes were necessary due to economic downturns and financial difficulties, which had adversely impacted their business operations.

The legal issues before the Commission were whether the proposed changes to the enterprise agreement were fair and reasonable, and whether the application met the criteria for a variation as outlined in the Fair Work Act 2009. Specifically, the Commission needed to assess if the changes were necessary to maintain the financial viability of the business, if the employees had been adequately consulted, and if the variations did not undermine the overall fairness of the agreement.

The Commission determined that the proposed changes were necessary to ensure the financial sustainability of Silverstrand Developments Pty Ltd. It found that the applicants had demonstrated significant financial hardship and that the changes would not undermine the overall fairness of the agreement. The Commission also considered the impact on the employees, including their consultation and the adequacy of the proposed changes in terms of maintaining their livelihood. Ultimately, the Commission concluded that the application met the statutory criteria for a variation of the enterprise agreement.

The Fair Work Commission varied the Silverstrand Developments Pty Ltd Enterprise Agreement 2016 - 2020 to reflect the changes proposed by the applicants. The varied agreement included reduced working hours, decreased pay rates, and other altered conditions of employment. The Commission's decision was based on the necessity of the changes for the financial viability of the business and the overall fairness to the employees.

Silverstrand Developments 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