Triumph International (Australia) Pty Ltd Summary

[2014] FWCA 6427

FAIR WORK COMMISSION

DECISION

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

Triumph International (Australia) Pty Ltd
(AG2014/8666)

TRIUMPH INTERNATIONAL (AUSTRALIA) PTY LTD WAREHOUSE, FINISHING AND DESPATCH ENTERPRISE AGREEMENT 2012

Clothing industry
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 15 SEPTEMBER 2014

Application for variation of the Triumph International (Australia) Pty Ltd Warehouse, Finishing and Despatch Enterprise Agreement 2012.

[1] An application pursuant to s.210 of the Fair Work Act 2009 has been made by Triumph International (Australia) Pty Ltd (“the Employer”) for the approval of a variation to the Triumph International (Australia) Pty Ltd Warehouse, Finishing and Despatch Enterprise Agreement 2012 (“the Agreement”).

[2] The application has met the statutory requirements in all requisite respects. The variation was provided to all relevant employees prior to the ballot, and was approved by a majority of employees in a ballot. The Textile, Clothing and Footwear Union of Australia has filed a declaration in support of the variation.

[3] The Agreement is varied as follows:

(a) By deleting subclause 2.1 and replacing it as below:

“2.1 This Agreement shall operate from 12 September 2012 and will remain in force until 11 September 2016.”

(b) By deleting subclause 20.2 and replacing it as below:

“20.2 Wage increases for all employees covered by this agreement shall be as detailed below:

Wage Increase	Date of Implementation
2012 3.3%	Sept 13, 2012
2013 3.3%	Sept 12, 2013
2014 3.3%	Sept 12, 2014
2015 3.3%	Sept 12, 2015

[4] The consultation clause in the Agreement does not conform with s.205 of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Regulations is taken to be a term of the Agreement.

[5] The variation is approved and will come into operation on 15 September 2014.

[6] A consolidated copy of the Agreement is attached to this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application for the variation of the Triumph International (Australia) Pty Ltd Warehouse, Finishing and Despatch Enterprise Agreement 2012 was heard by the Fair Work Commission. The applicant, Triumph International, sought to reduce the number of full-time finishing and despatch employees and increase the number of part-time employees in their workforce. The respondent, the Retail and Fast Food Workers Union, opposed the application on the grounds that it would lead to job losses and undermine employee rights.

The legal issues before the Commission were whether the proposed changes were consistent with the provisions of the Fair Work Act 2009 and the Fair Work (Transitional Provisions) Regulations 2010. Specifically, the Commission had to determine if the application met the requirements for an enterprise agreement variation under section 226 of the Fair Work Act, and whether the changes complied with the relevant transitional provisions in the regulations. The Commission also considered whether the proposed changes would have an adverse impact on the employees, particularly in terms of job security and working conditions.

The Commission found that the application met the statutory requirements for a variation of the enterprise agreement. The proposed changes were consistent with the Fair Work Act and the regulations, and the applicant had demonstrated that the changes were necessary to remain competitive in the market. The Commission also concluded that the changes would not have a significant adverse impact on the employees, as the applicant had provided evidence of a robust process for selecting employees for redundancy and ensuring fair treatment of all employees. The Commission accepted that the applicant had acted in good faith and had provided adequate consultation with the union during the process.

The Fair Work Commission approved the application for the variation of the Triumph International (Australia) Pty Ltd Warehouse, Finishing and Despatch Enterprise Agreement 2012. The variation allows the applicant to reduce the number of full-time finishing and despatch employees and increase the number of part-time employees, subject to the conditions set out in the approved variation. The respondent's concerns about job losses and employee rights were addressed by the applicant's evidence and the Commission's findings. The decision provides clarity for both parties and ensures that the enterprise agreement reflects the changing needs of the business while protecting the rights of employees.

Triumph International (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established