DECISION

Fair Work Act 2009
s.210—Enterprise agreement

STA Traffic Management Solutions Pty Ltd T/A STA Traffic Management
(AG2018/3348)

STA TRAFFIC MANAGEMENT ENTERPRISE AGREEMENT 2014-2018

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	SYDNEY, 3 AUGUST 2018

Application for variation of the STA Traffic Management Enterprise Agreement 2014-2018.

[1] An application has been made for approval of a variation to the STA Traffic Management Enterprise Agreement 2014-2018 (the Agreement). The application was made by STA Traffic Management Solutions Pty Ltd T/A STA Traffic Management 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 5 March 2015. 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 3 August 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of STA Traffic Management Solutions Pty Ltd trading as STA Traffic Management, the Fair Work Commission (FWC) was approached for a variation of the Enterprise Agreement (EA) that had been in place since 2014. The applicant sought to alter various aspects of the EA, including wage rates, penalty rates, and allowances, citing economic and operational factors. The respondent, Australian Council of Trade Unions (ACTU), opposed the application, arguing that the proposed changes were not warranted and would adversely affect the employees' conditions.

The central legal issues before the FWC were whether the applicant had demonstrated exceptional circumstances justifying the proposed variations and whether the changes were fair and reasonable. The FWC needed to assess the applicant’s evidence regarding the economic viability of the business, the necessity of wage adjustments, and the impact of the proposed changes on the employees. Furthermore, the FWC had to determine if the changes met the "better off overall test," ensuring that employees would not be worse off as a result of the variations.

After evaluating the submissions from both parties, the FWC concluded that the applicant had not adequately demonstrated the exceptional circumstances necessary to justify the proposed changes. The FWC found that the applicant's financial difficulties were not sufficiently compelling to warrant the variations, and the proposed changes did not meet the better off overall test. The FWC noted that while some aspects of the application had merit, the overall package of changes was not fair and reasonable. Consequently, the application for variation was dismissed.

The FWC did not order any changes to the existing Enterprise Agreement. The EA would continue to operate as it was, with no modifications to wage rates, penalty rates, or allowances.

STA Traffic Management Solutions Pty Ltd T/A STA Traffic Management

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established