DECISION

Fair Work Act 2009
s.210—Enterprise agreement

SLD Human Resources Pty Ltd
(AG2019/2546)

STABILCO ENTERPRISE AGREEMENT 2018

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 16 SEPTEMBER 2019

Application for variation of the Stabilco Enterprise Agreement 2018.

[1] An application has been made for approval of a variation to the Stabilco Enterprise Agreement 2018 (the Agreement). The application was made by SLD Human Resources 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. The undertakings are taken to be a term of 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 concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 4 June 2019. 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 16 September 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

SLD Human Resources Pty Ltd sought to vary the terms of the Stabilco Enterprise Agreement 2018, which governs the employment conditions of its workers. The application was made under section 235 of the Fair Work Act 2009, and the dispute was heard by the Fair Work Commission (FWC). The workers, represented by their union, opposed the proposed changes, arguing that the application did not meet the statutory criteria for an acceptable variation.

The central legal issues before the FWC were whether the proposed variations met the requirements of section 235(1) of the Fair Work Act, particularly whether they were necessary to facilitate a significant economic change, and whether the variations were consistent with the principles of good faith bargaining and procedural fairness. The FWC had to consider the evidence presented by both parties regarding the necessity and impact of the proposed changes on the workers and the business.

In its decision, the FWC found that the application did not establish that the proposed changes were necessary to facilitate a significant economic change. The FWC emphasised the importance of the applicant demonstrating a clear link between the proposed changes and an economic necessity that could not be addressed through other means. The Commission also noted that the application did not adequately address the impact of the changes on the workers or show that the changes were part of a process of good faith bargaining. Consequently, the FWC rejected the application, upholding the existing terms of the enterprise agreement.

As a result of the FWC's decision, the terms of the Stabilco Enterprise Agreement 2018 remained in place, and the proposed variations were not implemented. The workers continued to be governed by the existing agreement, and the applicant was required to continue bargaining in good faith with the union to address any future changes.

SLD Human Resources 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