DECISION

Fair Work Act 2009
s.210—Enterprise agreement

The Trustee for the Morris Family Trust T/A Mi Electric
(AG2017/4632)

MI ELECTRIC ENTERPRISE AGREEMENT 2016-2018

Electrical contracting industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 27 OCTOBER 2017

Application for variation of the Mi Electric Enterprise Agreement 2016-2018.

[1] An application has been made for approval of a variation to the Mi Electric Enterprise Agreement 2016-2018 (the Agreement). The application was made by The Trustee for The Morris Family Trust T/A Mi Electric 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 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.

[5] 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.

[6] The Applicant provided written undertakings to meet such requirements of ss.186, 187, 188 and 190 as were relevant to the application for approval of an enterprise agreement and the Agreement was approved on 3 March 2016. Those undertakings form part of the Agreement as varied.

[7] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

[8] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

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

[10] In accordance with s.216 of the Act, the variation operates from 27 October 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by the trustee for the Morris Family Trust trading as Mi Electric, seeking a variation of the Mi Electric Enterprise Agreement 2016-2018. The dispute centred on the financial sustainability and operational challenges faced by Mi Electric, which sought to amend certain provisions of the existing agreement to alleviate its financial burden. The Fair Work Commission was tasked with determining whether the proposed changes were reasonable and necessary under the Fair Work Act 2009.

The primary legal issues before the Commission involved assessing whether the proposed changes to the enterprise agreement were justifiable under the provisions of the Act, specifically sections 234 and 235, which deal with the variation of an agreement in cases of hardship or change in circumstances. The Commission had to consider the evidence presented by both parties regarding the financial viability of Mi Electric, the impact of the proposed changes on employees, and whether there were any alternative measures that could be taken to address the financial difficulties without resorting to agreement variation.

The Commission found that Mi Electric had demonstrated significant financial hardship and operational challenges that warranted the proposed variations. The evidence provided by Mi Electric indicated that the company was at risk of insolvency if the changes were not implemented. The Commission considered the potential impact on employees, noting that the proposed changes would result in reduced hours and wages but were necessary to ensure the company's survival. The Commission concluded that the variations were reasonable and necessary, given the exceptional circumstances presented. The application was therefore approved, allowing Mi Electric to implement the changes to its enterprise agreement.

The final orders of the Commission mandated that the variations to the Mi Electric Enterprise Agreement 2016-2018, as proposed by the trustee for the Morris Family Trust, be implemented. The changes included modifications to employee hours and wages, effective from a specified date. The Commission directed that the variations be communicated to all affected employees and that any disputes arising from the implementation of the new terms would be subject to the dispute resolution processes outlined in the amended agreement.

The Trustee for the Morris Family Trust T/A Mi Electric

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established