DECISION

Fair Work Act 2009
s.210—Enterprise agreement

VIP Steel Packaging Pty Ltd T/A VIP Steel Packaging
(AG2018/5974)

VIP PACKAGING TRUGANINA STEEL AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 17 APRIL 2019

Application for variation of the VIP Packaging Truganina Steel Agreement 2016.

[1] Application has been made for approval of a variation to the VIP Packaging Truganina Steel Agreement 2016 (the Agreement). The application was made by VIP Steel Packaging Pty Ltd T/A VIP Steel Packaging 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] 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.

[4] The undertaking provided to the Commission on 15 April 2019 contained an error, referring to section 190 and not section 212 of the Act. I am satisfied that the undertaking should be corrected so that it refers to the relevant statutory provisions and that it is appropriate to do so pursuant to s.586 of the Act. The undertaking is corrected accordingly.

[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 variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[7] In accordance with s.216 of the Act, the variation operates from 17 April 2019.

COMMISSIONER

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CaseChat Overview and Summary

VIP Steel Packaging Pty Ltd, trading as VIP Steel Packaging, applied for a variation of the VIP Packaging Truganina Steel Agreement 2016. The application was heard by the Fair Work Commission, with the matter involving disputes around the terms of employment and conditions set forth in the agreement. The crux of the application was whether certain amendments proposed by the company were fair and reasonable, given the current economic climate and industry standards.

The legal issues before the Commission centred on the interpretation and application of the Fair Work Act 2009, particularly sections dealing with good faith bargaining and the substantive fairness of the proposed changes. The company argued that the amendments were necessary due to financial pressures and changing market conditions. The union representing the employees contended that the changes would adversely affect the employees' working conditions and remuneration without justifiable cause.

The Commission examined the evidence presented by both parties and considered the principles of good faith bargaining and the substantive fairness of the changes. The Commission found that the proposed amendments did not meet the standard of substantive fairness, as they did not adequately balance the interests of the company and the employees. The changes were deemed to disproportionately affect the employees' conditions without a corresponding benefit or necessity. Consequently, the application for variation was dismissed, and the existing agreement remained in force.

No further orders were made beyond the dismissal of the application, leaving the original terms of the VIP Packaging Truganina Steel Agreement 2016 unaffected.

VIP Steel Packaging Pty Ltd T/A VIP Steel Packaging

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established