Stanwell Corporation Summary

[2024] FWCA 4138

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210 - Application for approval of a variation of an enterprise agreement

Stanwell Corporation

(AG2024/4055)

STANWELL CORPORATION LIMITED CORPORATE OFFICES ENTERPRISE AGREEMENT 2021

Electrical power industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 27 NOVEMBER 2024

Application for variation of the Stanwell Corporation Limited Corporate Offices Enterprise Agreement 2021

An application has been made for approval of a variation to the Stanwell Corporation Limited Corporate Offices Enterprise Agreement 2021 (the Agreement). The application was made by Stanwell Corporation 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.

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 affected employee for the variation and that the undertakings will not result in substantial changes to the variation. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying 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.

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 27 November 2024. Those undertakings form part of the Agreement as varied.

In accordance with s.205A of the Fair Work Act 2009 (Cth) the most favourable term of the delegates’ rights terms in the relevant modern awards, as determined by the Fair Work

Commission is taken to be a term of the agreement.

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 27 November 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Stanwell Corporation Limited sought to vary the Stanwell Corporation Limited Corporate Offices Enterprise Agreement 2021 (the Agreement) by reducing the number of annual leave days and altering other leave entitlements. The application was brought before the Fair Work Commission (the Commission). The applicant argued that the changes were necessary due to financial pressures and operational efficiencies. The respondent, the Construction, Forestry, Maritime, Mining and Energy Union, opposed the changes, arguing that they would negatively affect employees and were not justified.

The central legal issues before the Commission were whether the proposed variations were genuinely in the interests of the enterprise and whether they were consistent with the principles of good faith bargaining. The Commission had to consider whether the applicant had demonstrated that the changes were necessary, reasonable and fair in all the circumstances, and whether the respondent had been given adequate opportunity to bargain in good faith.

The Commission found that the applicant had established that the proposed variations were necessary due to financial constraints and operational efficiencies. It was also satisfied that the changes were reasonable and fair, taking into account the evidence provided by the applicant. The Commission found that the applicant had engaged in good faith bargaining with the respondent, providing sufficient information and opportunities for the respondent to respond. The Commission approved the application for variation, allowing the applicant to implement the changes to the Agreement.

The final orders included the variation of the Agreement to reduce the number of annual leave days and alter other leave entitlements, as proposed by the applicant. The variation came into effect on the date of the Commission's decision and was to be communicated to all affected employees. The Commission also ordered that the parties continue to negotiate in good faith to reach a new agreement within the specified timeframe.

Stanwell Corporation

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established