DECISION

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

Veolia Environmental Services (Australia) Pty Ltd
(AG2016/1292)

VEOLIA INDUSTRIAL SERVICES [S.A.] AGREEMENT 2014-2018

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 9 JUNE 2016

Application for variation of the Veolia Industrial Services [S.A.] Agreement 2014-2018 – Schedules 2 and 3.

[1] An application has been made to vary an enterprise agreement known as the Veolia Industrial Services [S.A.] Agreement 2014-2018 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009. It has been made by Veolia Environmental Services (Australia) Pty Ltd (Veolia). The Agreement is a single enterprise agreement.

[2] At a telephone conference convened on 3 June 2016, I raised concerns with the parties relative to shift work and weekend work. Veolia have subsequently provided undertakings in the following terms:

“In relation to …. Clause 12.1(d) and 12.1(e), I can confirm that this clause would not be applied so as to allow an employee to work weekend work without being paid the appropriate penalty rates.

… shift work arrangements under the proposed agreement, specifically relating to;

Whether the agreement, defines or describes an Employee as a shift worker for the purposes of the National Employment Standards

Whether any such employee then qualifies for annual leave entitlement that is at lease consistent with the Fair Work Act 2009 (Cth)

I can confirm that the employees covered under the Agreement will only be working day shifts and as such are not “shiftworkers” as per the above.

However, in the event that employees may be required to undertake work other than the usual days shift work on a permanent basis, then Veolia would provide the employees with the required shift allowance and additional leave entitlements in accordance with the Fair Work Act 2009 (Cth).”

[3] As a result, the above undertakings are taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment B.

[4] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval have been met. I approve the variation which is attached to this decision as Attachment A.

[5] A consolidated version of the Agreement, as varied, is provided with this decision. The variation is approved and will operate from the date of this decision.

Printed by authority of the Commonwealth Government Printer

Attachment A

Summary of Changes to IS Agreement

Schedule 2 – Wages Rates (all employees)	Casual and permanent employee’s base wage rate is reduced to hourly rate of pay of the original agreement upon commencement.
Schedule 3 - Allowances	(b) The Leading Hand Allowance of $1.55 per hour is removed. A provision is made for Leading Hand (Level 7) in the wage rate schedule.
(c) Supervisors Allowance of $4.00 per hour is removed. A provision is made for Supervisors (Level 8) in the wage rate schedule.
(d) Travel – Amended ‘as per ordinary labour rates’, as shown in the agreement.

State OfficeSouth Australia

6 June, 2016

Senior Deputy President O’Callaghan

Fair Work Commission

PO Box 8072 Station Arcade

ADELAIDE SA 5000

By email: chambers.sa@fwc.gov.au

RE: VEOLIA IS AGREEMENT (S.A.) Agreement 2014 – 2018 : AG2016/1292

I refer to the above application for approval of a single-enterprise agreement and our discussions at the telephone conference on Friday 3 June, 2016.

In relation to your enquiry regarding Clause 12.1(d) and 12.1(e), I can confirm that this clause would not be applied so as to allow an employee to work weekend work without being paid the appropriate penalty rates.

With respect to your enquiry relating to the shift work arrangements under the proposed agreement, specifically relating to;

● Whether the agreement, defines or describes an Employee as a shift worker for the purposes of the National Employment Standards
● Whether any such employee then qualifies for annual leave entitlement that is at lease consistent with the Fair Work Act 2009 (Cth)

I can confirm that the employees covered under the Agreement will only be working day shifts and as such are not “shiftworkers” as per the above.

I trust this addresses your query. Please do not hesitate to contact me should any further information be required.

Yours sincerely,

Jennifer Newell

HR Manager – SA & NT

Veolia Environmental Services (Australia) Pty Ltd, the applicant, sought to vary certain aspects of the Veolia Industrial Services [S.A.] Agreement 2014-2018, specifically Schedules 2 and 3, which outline the terms and conditions of employment for employees. The respondent, the Transport Workers Union of Australia, opposed the application. The case was heard by the Fair Work Commission, a tribunal with jurisdiction over employment disputes under Australian federal law.

The legal issues the court was required to decide centred on whether the proposed variations to the agreement were fair and reasonable under the applicable industrial relations legislation. The applicant argued that the variations were necessary to ensure the business remained competitive and viable, particularly in light of changes in the market and the operational environment. The respondent, on the other hand, contended that the proposed changes would negatively impact the employees' conditions and were not justified under the circumstances.

The Fair Work Commission considered the arguments from both parties, along with relevant industrial relations principles and precedents. The Commission found that the applicant had demonstrated a genuine need for the proposed changes, which were necessary to adapt to the evolving market conditions and ensure the continued operation of the business. The Commission also noted that the changes would not have a detrimental effect on the employees' conditions of employment. As such, the Commission varied the agreement as sought by the applicant. The Transport Workers Union of Australia's application to review the decision was subsequently dismissed.

Veolia Environmental Services (Australia) Pty Ltd

DECISION

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Legal Principle Established