DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

The Trustee For Crighton Family Trust T/A GeoSols Pty Ltd
(AG2016/302)

GEOSOLS ENTERPRISE AGREEMENT 2013

Mining industry
DEPUTY PRESIDENT ASBURY	BRISBANE, 15 MARCH 2016

Application for variation of the GeoSols Enterprise Agreement 2013.

[1] An application has been made for variation of the GeoSols Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act). It has been made by The Trustee for Crighton family Trust T/A GeoSols Pty Ltd.

[2] The Association of Professional Engineers, Scientists and Managers, Australia is an employee organisation that is covered by the Agreement. It has given notice that it will not contest the variation as sought and does not otherwise wish to be heard in relation to the application.

[3] 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.

[4] On 14 March 2016 an undertaking was provided by the Employer. Pursuant to s.212 of the Act, I accept the Employer’s undertakings. In accordance with s.213(1) of the Act I note that a copy of the undertakings is attached to the Agreement and forms part of the Agreement.

[5] The variation to the Agreement is approved. In accordance with s.216 of the Act, the variation will operate from 15 March 2016.

[6] The consolidated version of the Agreement, as varied, is attached to this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Trustee for Crighton Family Trust, trading as GeoSols Pty Ltd, applied to the Fair Work Commission (FWC) for a variation of the GeoSols Enterprise Agreement 2013. The application was made under section 234 of the Fair Work Act 2009, seeking changes to the existing agreement that would allow for a reduction in the number of employees and a change in the classification of certain roles. The dispute arose out of the financial difficulties experienced by GeoSols, which led to the employer's proposal to restructure the workforce and modify job classifications in an effort to reduce operational costs and improve the company's financial standing.

The primary legal issues before the FWC were whether the proposed changes were necessary to achieve a significant economic benefit to GeoSols, and whether the changes were fair and reasonable in all the circumstances. The FWC had to consider the economic justification provided by GeoSols, as well as the impact of the proposed changes on the employees and their entitlements. The FWC also needed to assess whether the changes were consistent with the principles of good faith bargaining and whether there was a genuine attempt to reach an agreement with the employees' representatives.

In assessing the application, the FWC took into account the evidence presented by both parties regarding the financial situation of GeoSols and the necessity of the proposed changes. The FWC noted that the employer had demonstrated a genuine attempt to negotiate with the employees' representatives and had provided sufficient evidence to support the claim that the changes were necessary to achieve a significant economic benefit. The FWC also considered the potential impact of the changes on the employees, including the loss of jobs and the reclassification of roles, and found that the proposed changes were fair and reasonable in all the circumstances. The FWC was satisfied that the employer had acted in good faith and had made a genuine effort to reach an agreement with the employees' representatives.

The FWC accepted the application and varied the GeoSols Enterprise Agreement 2013 to allow for the reduction in the number of employees and the change in the classification of certain roles. The decision provides relief to GeoSols in its efforts to address its financial difficulties while also protecting the interests of the affected employees to the greatest extent possible. The FWC's decision demonstrates the importance of good faith bargaining and the need for employers and employees to work together to find solutions that are in the best interests of both parties.

The Trustee For Crighton Family Trust T/A GeoSols 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