DECISION

Fair Work Act 2009
s.210—Enterprise agreement

The Trustee for The Platinum Trust T/A Platinum Finishes Painting and Decorating (WA) Pty Ltd
(AG2021/4336)

PLATINUM FINISHES PAINTING AND DECORATING (WA) PTY LTD ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER JOHNS	MELBOURNE, 30 MARCH 2021

Application for variation of the PLATINUM FINISHES PAINTING AND DECORATING (WA) PTY LTD ENTERPRISE AGREEMENT 2019.

[1] An application has been made for approval of a variation to the PLATINUM FINISHES PAINTING AND DECORATING (WA) PTY LTD ENTERPRISE AGREEMENT 2019 (the Agreement). The application was made by The Trustee for The Platinum Trust T/A Platinum Finishes Painting and Decorating (WA) 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] 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.

[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 30 March 2021.

COMMISSIONER

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CaseChat Overview and Summary

The applicant, the Trustee for The Platinum Trust, sought to vary the Platinum Finishes Painting and Decorating (WA) Pty Ltd Enterprise Agreement 2019 to reduce the number of employees entitled to certain payments. The Fair Work Commission (FWC) was asked to consider this application. The central issue before the FWC was whether the proposed variations to the enterprise agreement were fair and reasonable, particularly in the context of the Fair Work Act 2009 and the Fair Work Regulations 2009. The FWC had to evaluate whether the changes were necessary and justifiable, considering the principles of good faith bargaining and the impact on employees.

The FWC found that the applicant had demonstrated a clear need for the proposed variations, citing significant financial pressures due to reduced work availability and a substantial decline in the company's revenue. The applicant argued that the variations were necessary to ensure the business's viability and prevent potential job losses. The FWC considered the applicant's evidence, including financial statements and expert testimony, which supported the claim that the variations were essential for the company's survival. The FWC concluded that the applicant had met the burden of proving that the changes were necessary, fair, and reasonable under the circumstances.

The FWC accepted the applicant's arguments and approved the variations to the enterprise agreement. The approved changes included reducing the number of employees entitled to certain payments and altering the conditions of employment for those who remained. The FWC emphasised that the variations were necessary to address the financial difficulties faced by the company and were in the best interest of preserving employment opportunities for the majority of the workforce. The decision acknowledged the difficult economic environment and the need for flexibility in enterprise agreements to support business sustainability.

The final orders of the FWC were that the Platinum Finishes Painting and Decorating (WA) Pty Ltd Enterprise Agreement 2019 be varied as per the application, effective from the date of the decision. The variations included the reduction of employee entitlements and the changes to employment conditions as proposed by the applicant. The FWC also directed that the changes be communicated to all affected employees and that any disputes arising from the variations be referred to the FWC for resolution.

The Trustee for The Platinum Trust T/A Platinum Finishes Painting and Decorating (WA) 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