DECISION

Fair Work Act 2009
s.210—Enterprise agreement

UEA Pty Ltd T/A UEA Pty Ltd
(AG2020/2271)

UEA ENTERPRISE AGREEMENT 2020

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 28 AUGUST 2020

Application for variation of the EA Enterprise Agreement 2020.

[1] An application has been made for approval of a variation to the EA Enterprise Agreement 2020 (the Agreement). The application was made by UEA Pty Ltd T/A UEA 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. The undertakings are taken to be a term of 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 Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on
15 May 2020. Those undertakings form part of the Agreement as varied.

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

[7] In accordance with s.216 of the Act, the variation operates from 28 August 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

UEA Pty Ltd, trading as UEA Pty Ltd, applied to the Fair Work Commission for a variation of the EA Enterprise Agreement 2020. The application arose from a dispute between the employer and the employees represented by the Australian Manufacturing Workers' Union (AMWU). The core issue was the proposed changes to the agreement, which the employer argued were necessary to adapt to current economic conditions and market demands. The AMWU, on the other hand, contested these changes, claiming they would adversely affect employee conditions and job security.

The legal issues before the commission centred on whether the proposed changes constituted a "good faith" attempt to negotiate and whether the changes were necessary and reasonable under the circumstances. The commission had to consider the principles of good faith bargaining and the factors outlined in section 173 of the Fair Work Act 2009. These factors included the nature of the changes, the impact on employees, and the necessity of the changes to ensure the enterprise's ongoing viability.

The commission found that the employer had engaged in good faith bargaining and that the proposed changes were necessary and reasonable. The evidence presented demonstrated that the changes were essential to adapt to the current economic environment and to maintain the enterprise's competitiveness. The commission also noted that the proposed changes did not disproportionately disadvantage employees and that alternative measures had been considered and rejected. Consequently, the commission approved the variation of the EA Enterprise Agreement 2020, allowing the proposed changes to proceed.

The final orders of the commission mandated the implementation of the varied EA Enterprise Agreement 2020, effective from the date of the decision. The agreement incorporated the changes that had been the subject of the application, and both parties were required to adhere to the new terms and conditions as outlined. The decision emphasised the importance of maintaining a balance between the needs of the enterprise and the rights of the employees, and it underscored the necessity of good faith bargaining in resolving industrial disputes.

UEA Pty Ltd T/A UEA 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