DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Southern Midlands Council
(AG2020/1862)

SOUTHERN MIDLANDS COUNCIL ENTERPRISE AGREEMENT NUMBER 10 OF 2017

Local government administration
DEPUTY PRESIDENT MASSON	MELBOURNE, 24 JULY 2020

Application for variation of the Southern Midlands Council Enterprise Agreement Number 10 of 2017.

[1] An application has been made for approval of a variation to the Southern Midlands Council Enterprise Agreement Number 10 of 2017 (the Agreement). The application was made by Southern Midlands Council 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 12 January 2017. 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 24 July 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Southern Midlands Council, in this instance acting as the employer, sought to alter the terms of the Enterprise Agreement Number 10 of 2017, which governed the employment conditions of its workers. The application for variation was lodged by the Council before the Fair Work Commission. The workers, represented by their union, opposed the application, contending that the proposed changes were unjust and detrimental to their existing rights and benefits.

The central legal issues before the Commission involved the interpretation and application of the Fair Work Act 2009, specifically sections related to good faith bargaining and the criteria for approving variations to an enterprise agreement. The Commission had to determine whether the Council had acted in good faith, whether the proposed changes were in the best interest of the workers, and if the changes were necessary to accommodate a significant change in circumstances. The argument hinged on whether the Council had demonstrated that the changes were necessary to maintain the financial viability of the organisation.

In delivering its decision, the Commission found that the Council had acted in good faith during the bargaining process. It further determined that the proposed changes were necessary to address significant financial pressures facing the Council. The Commission emphasised the importance of the Council's financial sustainability and the need for flexibility in the agreement to adapt to changing economic conditions. Consequently, the application for variation was approved, with certain conditions attached to safeguard the workers' interests to the extent possible under the circumstances.

The Fair Work Commission ordered that the Enterprise Agreement Number 10 of 2017 be varied as per the application submitted by the Southern Midlands Council. The changes included adjustments to wages and conditions, which the Commission deemed necessary while also providing protections for the employees. This decision underscores the balance the Commission must strike between organisational financial health and employee welfare.

Southern Midlands Council

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established