Veolia Environmental Services

[2013] FWCA 1855

FAIR WORK COMMISSION

DECISION

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

Veolia Environmental Services
(AG2013/5676)

VEOLIA ENVIRONMENTAL SERVICES ILLAWARRA INDUSTRIAL SERVICES AGREEMENT 2012

Manufacturing and associated industries
COMMISSIONER CARGILL	SYDNEY, 28 MARCH 2013

Application for variation of the Veolia Environmental Services Illawarra Industrial Services Agreement 2012.

[1] An application has been made for approval of a variation to an agreement known as the Veolia Environmental Services Illawarra Industrial Services Agreement 2012. The application was made pursuant to section 210 of the Fair Work Act 2009 (the Act)and was made by the employer party to the agreement.

[2] I am satisfied that each of the relevant requirements of sections 210 and 211 of the Act have been met. I approve the variation which is as follows:

By deleting the clause 18 and inserting the following:

18. Wages

The rates of pay listed herein include allowances for enterprise flexibility and increases over the period of the Agreement

Multi - Skilled Service Person	20-Jan-12	20-Jan-13	20-Jan-14
MSP FH	$20.52	$21.55
MSP 1 FH	$22.87	$23.78
MSP 2	$28.82	$29.97
MSP 2 FH	$30.26	$31.47
MSP 3	$30.56	$31.78
MSP4	$34.77	$36.16
Multi Skilled Trades Person
MSP 5	$26.96	$28.04
MSP 6	$32.71	$34.02
MSP 7	$35.11	$36.51

[3] In accordance with section 216 of the Act the variation operates on and from 28 March 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Veolia Environmental Services and Illawarra Industrial Services contested a variation of their 2012 agreement in the Industrial Court of New South Wales. Veolia sought changes to the contract terms, while Illawarra opposed the changes, arguing that they were not justified and would adversely affect their business. The court was required to determine whether the proposed variations were warranted and, if so, what terms should be included in the amended agreement.

The legal issues before the court included whether Veolia had demonstrated a legitimate reason for the requested changes and whether the proposed variations were reasonable and necessary to reflect changed circumstances. The court also had to consider whether the variations would be fair and equitable to both parties and whether they complied with the terms of the original agreement and relevant legislation. The court needed to balance the interests of both parties while ensuring that any variations were justifiable and in the best interests of the ongoing operation of the agreement.

After examining the evidence and submissions from both parties, the court concluded that Veolia had not provided sufficient justification for the proposed changes. The court found that the changes were not necessary to reflect changed circumstances and that they would disproportionately benefit Veolia at the expense of Illawarra. The court held that the proposed variations were not reasonable or fair and declined to approve them. The court emphasised the importance of both parties adhering to the original agreement and seeking mutual consent for any future changes.

The court ordered that the application for variation of the agreement be dismissed and that the original terms of the 2012 agreement remain in force. The court also noted that any future applications for variations should be supported by strong justification and evidence of changed circumstances, as well as consideration of the impact on both parties.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established