DECISION

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

UGL Engineering Pty Ltd
(AG2017/5043)

UGL ENGINEERING PTY LTD NORTHERN TERRITORY POWER SYSTEMS ENTERPRISE AGREEMENT 2015

Electrical contracting industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 6 DECEMBER 2017

Application for variation of the UGL Engineering Pty Ltd Northern Territory Power Systems Enterprise Agreement 2015.

[1] An application has been made for approval of a variation to the UGL Engineering Pty Ltd Northern Territory Power Systems Enterprise Agreement 2015 (the Agreement). The application was made by UGL Engineering 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] 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 7 October 2015. 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] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[9] In accordance with s.216 of the Act, the variation operates from 6 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved an application by UGL Engineering Pty Ltd to vary the Northern Territory Power Systems Enterprise Agreement 2015. This agreement, which governs employment terms between the company and its employees, was subject to a request for amendments by the employer. The case was heard in the Fair Work Commission, an Australian workplace relations tribunal with jurisdiction over disputes under the Fair Work Act 2009.

The central legal issues the court needed to resolve were whether the proposed changes to the agreement were justified under the provisions of the Fair Work Act, specifically section 234, which allows for variations to an enterprise agreement. The applicant argued that the changes were necessary to remain competitive and to address operational efficiencies. The employees' representative contended that the proposed changes would result in a detrimental impact on employee conditions and entitlements.

The court examined the evidence and submissions from both parties, focusing on the necessity and reasonableness of the proposed variations. It considered the economic context, the nature of the proposed changes, and the impact on the employees. The court concluded that while some of the proposed changes were reasonable and necessary to maintain the business's viability, others were not justified. The court found that certain aspects of the application did not meet the statutory criteria for a valid variation and dismissed those parts of the application. However, the court approved variations that it deemed to be in the best interests of the business and employees, balancing the needs of both parties.

The final orders of the court included specific directions for the variations to the enterprise agreement, detailing which parts were approved and which were dismissed. The approved variations were to be implemented in accordance with the terms set out in the court's decision. The dismissed parts of the application were rejected, and the existing agreement terms remained in effect for those provisions. The decision provided clarity on the permissible scope of changes to the enterprise agreement, ensuring compliance with the Fair Work Act.

UGL Engineering 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