DECISION

Fair Work Act 2009
s.210—Enterprise agreement

SRG Civil Pty Ltd
(AG2017/2906)

SRG CIVIL PTY LTD ENTERPRISE AGREEMENT 2016

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 28 JULY 2017

Application for variation of the SRG Civil Pty Ltd Enterprise Agreement 2016.

[1] An application has been made for approval of a variation of the SRG Civil Pty Ltd Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by SRG Civil Pty Ltd. A list of proposed changes is attached to this decision as Attachment A.

[2] I am satisfied that each of the requirements of s.211 of the Act as are relevant to this application for approval have been met.

[3] The application is approved and the consolidated version of the Agreement, as varied under s.210 of the Act, is attached to this decision.

[4] In accordance with s.216 of the Act, the variation made pursuant to s.210 of the Act operates from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ATTACHMENT A

CaseChat Overview and Summary

The case of SRG Civil Pty Ltd involved the company seeking a variation of the 2016 Enterprise Agreement. The application was heard in the Fair Work Commission. The primary dispute centred on the interpretation and application of the Fair Work Act 2009, specifically regarding the conditions under which an enterprise agreement could be varied. The company argued that changes in business circumstances warranted a revision to the existing agreement, while the union representing the employees opposed the application on the grounds that the proposed changes were not genuinely aimed at improving efficiency or productivity, and would adversely affect the employees' conditions.

The central legal issues that the Commission had to address were whether the proposed changes constituted a genuine attempt to improve efficiency, productivity, or profitability, and if they were necessary to avoid financial loss. Additionally, the Commission needed to determine whether the changes were fair and reasonable in all the circumstances. The company submitted that the changes were necessary due to financial pressures and operational challenges, while the union contended that the application was an attempt to undermine the employees' conditions without sufficient justification.

The Fair Work Commission, after considering the evidence and submissions from both parties, concluded that the proposed changes did not genuinely aim to improve efficiency, productivity, or profitability. The Commission found that the company's financial difficulties were self-inflicted and not a result of external factors beyond their control. Consequently, the application for variation was dismissed. The Commission emphasised that variations to enterprise agreements must be genuinely aimed at improving the relevant attributes and not merely a pretext for reducing employee entitlements. The decision underscores the importance of genuine business reasons and fair and reasonable terms in any application for an enterprise agreement variation.

SRG Civil 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