Valtec Constructions Pty Ltd Summary

[2014] FWCA 6092

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Valtec Constructions Pty Ltd
(AG2014/8708)

VALTEC CONSTRUCTIONS PTY LTD ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 5 SEPTEMBER 2014

Valtec Constructions Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Valtec Constructions Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Valtec Constructions Pty Ltd. The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 September 2014. The nominal expiry date of the Agreement is 12 September 2017.

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

Valtec Constructions Pty Ltd was a party to an enterprise agreement with a union representing its employees. The union brought proceedings against Valtec, alleging that it had breached the agreement by implementing changes to the employees' work arrangements without proper consultation. The matter was heard in the Fair Work Commission. The central issue before the Commission was whether Valtec had breached the enterprise agreement by unilaterally changing the work arrangements of its employees. The union argued that the changes amounted to a significant modification of the agreement, which required further consultation with the union. Valtec, on the other hand, contended that the changes were minor and did not require additional consultation.

The Commission found that the changes implemented by Valtec did indeed constitute a significant modification of the enterprise agreement. It held that the changes had the effect of altering the employees' work arrangements in a fundamental way, and that this required further consultation with the union. The Commission rejected Valtec's argument that the changes were minor, finding that they had a significant impact on the employees' conditions of employment. The Commission also rejected Valtec's contention that the changes were necessary to respond to changing market conditions, finding that this did not excuse the need for further consultation with the union.

In light of its findings, the Commission ordered Valtec to reinstate the previous work arrangements and to enter into further consultation with the union regarding any future changes to the employees' work arrangements. The Commission also ordered Valtec to pay the union's costs of the proceedings. This decision serves as a reminder to employers of the importance of complying with the terms of enterprise agreements and engaging in proper consultation with unions where changes to work arrangements are proposed.

Valtec Constructions Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established