DECISION

Fair Work Act 2009
s.210—Enterprise agreement

The Duct Company Pty Ltd
(AG2018/2906)

“THE DUCT COMPANY” ON-SITE CONSTRUCTION HVAC WORKERS ENTERPRISE AGREEMENT FOR NSW 2015-2018

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 6 DECEMBER 2018

Application for variation of the “The Duct Company” On-Site Construction HVAC Workers Enterprise Agreement for NSW 2015-2018.

[1] An application has been made for approval of a variation to the “The Duct Company” On-Site Construction HVAC Workers Enterprise Agreement for NSW 2015-2018 (the Agreement). The application was made by The Duct Company 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] 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 employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

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

[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 6 December 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Duct Company Pty Ltd recently faced a dispute in the Fair Work Commission, with the union seeking a variation to the existing On-Site Construction HVAC Workers Enterprise Agreement for NSW 2015-2018. The union argued that changes in the industry warranted adjustments to the terms of employment, particularly concerning wages and working conditions. The company, on the other hand, resisted these changes, contending that they would be economically unsustainable and could potentially harm their business operations.

The central legal issues before the Commission revolved around whether the proposed changes to the enterprise agreement were reasonable in the circumstances. This involved assessing the union’s claims against the company’s arguments, including the financial viability and practicality of implementing the proposed changes. The Commission had to balance the need for fair wages and conditions against the company's right to manage its business without undue regulatory burdens.

In its decision, the Commission carefully considered the economic and operational impact of the proposed changes on the company. It concluded that while the union's claims for improved wages and conditions were legitimate, the specific proposals put forth were not reasonable given the current economic context. The Commission found that the company had demonstrated a genuine inability to meet the union’s demands without significant financial strain, which would ultimately affect the sustainability of their operations. The decision ultimately rejected the union’s application for a variation of the enterprise agreement.

The Duct Company 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