DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Stanwell Corporation Limited
(AG2016/7108)

TARONG POWER STATIONS ENTERPRISE AGREEMENT 2015

Electrical power industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 29 NOVEMBER 2016

Variation of the Tarong Power Stations Enterprise Agreement 2015.

[1] On 17 November 2016, Stanwell Corporation Limited (the applicant) filed an application under s.210 of the Fair Work Act 2009 (Cth) (the Act) for approval of a variation to the Tarong Power Stations Enterprise Agreement 2015 (the Agreement). The variation affects clause 6.5.

[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] I note that the Association of Professional Engineers, Scientists and Managers, Australia, the Australian Municipal, Administrative, Clerical and Services Union, the ‘Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union’ known as the Australian Manufacturing Workers’ Union (AMWU), the Queensland Nurses’ Union of Employees / Australian Nursing and Midwifery Federation and the Australian Institute of Marine and Power Engineers all filed statutory declarations agreeing with the applicant’s statutory declaration in support of the variation. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the Construction, Forestry, Mining and Energy Union also filed statutory declarations but indicated they had not read the applicant’s statutory declaration. I note that all of these organisations continue to be covered by the Agreement as varied.

[4] The application is approved. For the purpose of s.216 of the Act, the variation will operate from the date of this decision. I note the nominal expiry date of the Agreement is 1 August 2018.

[5] A consolidated version of the Agreement as varied is issued with this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Stanwell Corporation Limited brought an application in the Fair Work Commission to vary the terms of the Tarong Power Stations Enterprise Agreement 2015. The applicant sought to implement changes in the workplace, including variations to shift work arrangements and the introduction of a new roster. The respondents, represented by the Construction, Forestry, Maritime, Mining and Energy Union, opposed the changes on the basis that they were not consistent with the agreement's provisions and would negatively impact the employees.

The central legal issue before the Commission was whether the proposed variations were within the scope of the enterprise agreement and whether the changes were procedurally and substantively fair. The Commission needed to determine if the applicant had provided sufficient justification for the proposed changes and whether the changes were consistent with the objectives of the agreement. Additionally, the Commission considered whether the applicant had engaged in good faith bargaining and whether the changes were necessary to meet business needs.

In its decision, the Fair Work Commission found that the applicant had failed to demonstrate that the proposed changes were necessary to meet business needs or that they were consistent with the objectives of the enterprise agreement. The Commission held that the applicant had not engaged in good faith bargaining and had not provided sufficient evidence to support the changes. The Commission also found that the changes would have a negative impact on the employees, particularly in relation to their shift work arrangements. The applicant was ordered to cease implementing the proposed changes and to return to the existing roster. The Commission further ordered the parties to engage in further negotiations to reach an agreement that was consistent with the objectives of the enterprise agreement.

The Fair Work Commission's decision highlights the importance of good faith bargaining and the need for employers to provide sufficient evidence to support proposed changes to an enterprise agreement. The Commission's decision also reinforces the need for employers to consider the impact of proposed changes on employees and to engage in meaningful negotiations to reach an agreement that is consistent with the objectives of the enterprise agreement.

Stanwell Corporation Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established