DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Star Electrical Co Pty Ltd
(AG2021/3982)

STAR ELECTRICAL CO PTY LTD & ETU SYDNEY CONSTRUCTION ENTERPRISE AGREEMENT 2019

Electrical contracting industry
COMMISSIONER JOHNS	MELBOURNE, 5 MARCH 2021

Application for variation of the Star Electrical Co Pty Ltd & ETU Sydney Construction Enterprise Agreement 2019

[1] An application has been made for approval of a variation to the Star Electrical Co Pty Ltd & ETU Sydney Construction Enterprise Agreement 2019 (the Agreement). The application was made by Star Electrical Co Pty Ltd 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] 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.

[4] 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
21 October 2019 Those undertakings form part of the Agreement as varied.

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

[6] In accordance with s.216 of the Act, the variation operates from 5 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Star Electrical Co Pty Ltd sought a variation to the Star Electrical Co Pty Ltd & ETU Sydney Construction Enterprise Agreement 2019. The applicant argued that changes in the industry, including the adoption of new technologies and shifts in the labour market, necessitated adjustments to the existing agreement to remain competitive and viable. The Electrical Trade Union Sydney Branch opposed the application, asserting that the proposed changes were detrimental to employee rights and working conditions, and there was insufficient evidence to support the claimed need for variation.

The central legal issues before the Commission were whether the applicant had demonstrated a significant change in circumstances warranting a variation of the enterprise agreement and whether any proposed changes were necessary to preserve the enterprise's economic viability. The Commission had to assess the evidence provided by the applicant regarding changes in the industry and labour market and evaluate whether these changes justified the proposed amendments to the agreement. Additionally, the Commission needed to consider the impact of the proposed changes on the employees and whether the applicant had met the statutory criteria for varying the agreement.

The Commission found that the applicant had not provided sufficient evidence of a significant change in circumstances to warrant a variation of the enterprise agreement. While acknowledging some changes in the industry, the Commission concluded that these changes did not necessitate the proposed amendments to the agreement. The applicant's submissions did not adequately demonstrate that the proposed changes were necessary to preserve the enterprise's economic viability or that there were no alternative measures that could be implemented without adversely affecting the employees. As such, the application for variation was dismissed.

The Commission ordered that the application for variation of the Star Electrical Co Pty Ltd & ETU Sydney Construction Enterprise Agreement 2019 be dismissed, with no orders for costs. The existing agreement remained in force, and the parties were directed to continue bargaining in good faith to address any ongoing issues or concerns related to the agreement.

Star Electrical Co 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