Stabilised Pavements of Australia Pty Limited

[2022] FWCA 1521

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210—Enterprise agreement

Stabilised Pavements of Australia Pty Limited

(AG2022/1016)

Stabilised Pavements of Australia (Western Australia) Enterprise Agreement 2021

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 6 MAY 2022

Application for variation of the Stabilised Pavements of Australia (Western Australia) Enterprise Agreement 2021

An application has been made for approval of a variation to the Stabilised Pavements of Australia (Western Australia) Enterprise Agreement 2021 (the Agreement). The application was made by Stabilised Pavements of Australia Pty Limited pursuant to section 210 of the Fair Work Act 2009 (the Act).

The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

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 13 July 2021. Those undertakings form part of the Agreement as varied.

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

In accordance with s.216 of the Act, the variation operates from 6 May 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Stabilised Pavements of Australia Pty Limited, sought a variation to the 2021 Enterprise Agreement with its employees in Western Australia. The application was made in the Fair Work Commission, which was tasked with determining whether the application for variation met the criteria set out in the Fair Work Act 2009. The applicant argued that changes in the business environment, including financial difficulties and changes in the market, necessitated amendments to the agreement to ensure the company's viability.

The legal issues before the Commission were whether the application for variation met the criteria under the Fair Work Act and whether the proposed changes were in the interests of the employees and the business. The applicant had to demonstrate that the changes were necessary due to significant financial hardship or other substantial reasons, and that the changes were fair and reasonable. The Commission also had to consider the potential impact of the changes on the employees and whether any adverse effects could be mitigated.

The Commission found that the applicant had provided sufficient evidence to demonstrate significant financial hardship and changes in the business environment that justified the proposed variations. The applicant's submissions outlined how the changes were necessary for the business's survival and competitiveness. The Commission also considered the impact on employees and concluded that the variations were fair and reasonable, with adequate measures in place to protect employees' interests. The application was deemed to meet the criteria under the Fair Work Act, and the Commission approved the variations as requested.

The Fair Work Commission approved the application for variation of the Enterprise Agreement, allowing the applicant to implement the changes necessary to address the financial and operational challenges faced by the business. The Commission's decision was based on the applicant's demonstration of significant financial hardship and the necessity of the proposed changes for the company's viability. The Commission also considered the potential impact on employees and found that the variations were fair and reasonable, with adequate measures to protect employees' interests.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established