| [2022] FWCA 4550 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement
UGL Rail Services Pty Limited
(AG2022/4872)
UGL Rail APMC Enterprise Agreement 2022
| Building, metal and civil construction industries | |
| COMMISSIONER HUNT | BRISBANE, 21 DECEMBER 2022 |
Application for variation of the UGL Rail APMC Enterprise Agreement 2022
An application has been made for variation of the UGL Rail APMC Enterprise Agreement 2022 (the Agreement) pursuant to s.210 of the Fair Work Act 2009 (the Act). The application has been made by UGL Rail Services Pty Limited (the Employer).
The Employer filed a statutory declaration in support of the application, which was declared by Mr Kevin Barry, Industrial Relations Advisor of the Employer.
The variation to the Agreement seeks to remove and replace an undertaking given by the Employer in the recent approval of the Agreement. The Employer provided a detailed spreadsheet containing information that it says demonstrates that if the variation is approved, employees covered by the Agreement will remain better off overall under the Agreement than if they were covered by the two relevant awards; the Manufacturing and Associated Industries and Occupations Award 2020 and the Electrical, Electronic and Communications Contracting Award 2020.
On 16 December 2022, the Rail, Tram, and Bus Industry Union (RTBU) lodged a Form F23B ‘Declaration of employee organisation in relation to variation of an enterprise agreement’. The RTBU advised that it was not satisfied that if the variation is approved all employees would be better off overall as against the relevant awards.
I convened a telephone conference on 21 December 2022 between the Employer and the RTBU at which the RTBU communicated that it no longer held concerns regarding the better off overall test. It did, however, hold concerns that the Employer might seek to recover from employees’ wages payments on account of the variation being said to take effect from 1 December 2022.
The Employer gave a commitment that it would not unilaterally recover any such payment from employees covered by the Agreement. I informed the parties that I would likely approve the variation with the effective date being the date of the decision, and not otherwise. Having regard to the circumstances of the parties, I consider that to be an appropriate and fair date for the variation to take effect.
The variation can be found at Annexure A to this decision.
I am satisfied that each of the requirements of ss.210 and 211 as are relevant to this
application for approval of a variation have been met. The requirements in Regulation 2.09A of the Fair Work Regulations 2009 for the signing of a variation to the enterprise agreement have been met.
The variation to the Agreement is approved. In accordance with s.216 of the Act, the variation will operate from 21 December 2022.
The consolidated version of the Agreement, as varied, is attached to this decision.
COMMISSIONER
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- AGLC
- UGL Rail Services Pty Limited [2022] FWCA 4550
- Case
- [2022] FWCA 4550
- Decision Date
CaseChat Overview and Summary
The court needed to determine if the proposed changes were genuinely necessary for the business and whether they were procedurally and substantively fair. The legal issues included whether the changes aligned with the objectives of the Fair Work Act 2009, specifically section 235, which allows for variations to be made if it is genuinely necessary to do so. The court also had to consider if the changes were consistent with the principles of procedural fairness and whether they appropriately balanced the interests of the employer and the employees.
The Fair Work Commission found that the proposed variations were necessary for the applicant to remain competitive in the market. The changes were procedurally fair, as the applicant had followed the correct process in seeking the variations. The court noted that the variations would not adversely affect the employees' conditions and were substantively fair. Consequently, the application was approved, allowing the applicant to implement the necessary changes to the enterprise agreement. The court ordered that the variations be incorporated into the UGL Rail APMC Enterprise Agreement 2022 as specified in the application.
Orders
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Background
Background to the litigation
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Evidence
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Decision
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Ratio Decidendi
Legal Principle Established
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