Stornoway Maintenance Pty Ltd

[2024] FWCA 2941

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Stornoway Maintenance Pty Ltd

(AG2024/1916)

STORNOWAY MAINTENANCE ENTERPRISE AGREEMENT TASMANIA 2021-2024

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 13 AUGUST 2024

Application for variation of the Stornoway Maintenance Enterprise Agreement Tasmania 2021–2024

An application has been made for approval of a variation to the Stornoway Maintenance Enterprise Agreement Tasmania 2021–2024 (the Agreement). The application was made by Stornoway Maintenance Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (Cth) (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 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 13 August 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Stornoway Maintenance Pty Ltd applied for a variation of the Stornoway Maintenance Enterprise Agreement Tasmania 2021–2024. The applicant sought to reduce the wages of employees, increase work hours, and alter the conditions of employment to accommodate operational changes. The dispute centred around the enforceability of the proposed changes and whether they met the criteria for a change in the workplace under the Fair Work Act 2009. The respondent argued that the proposed changes were unreasonable and did not meet the threshold for a genuine change in the workplace.

The court needed to determine whether the proposed changes in the enterprise agreement met the legal criteria for a variation under the Fair Work Act 2009. Specifically, the court had to assess whether the changes were reasonable in all the circumstances and whether they genuinely reflected a change in the workplace. The court considered the nature of the changes, their impact on employees, and whether there was a genuine change in the circumstances that justified the proposed amendments. Additionally, the court examined the bargaining process and whether it was conducted in good faith.

The Fair Work Commission found that the proposed changes did not meet the criteria for a genuine change in the workplace. The changes were deemed unreasonable as they significantly impacted the employees' working conditions and wages without a corresponding benefit or change in the workplace. The court emphasised the importance of maintaining fair and reasonable terms in enterprise agreements, especially in light of the current economic climate. The application for variation was dismissed, and the original enterprise agreement remained in effect. The court's decision underscored the need for employers to engage in fair and transparent bargaining processes when seeking changes to enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established