DECISION

Fair Work Act 2009
s.185—Enterprise agreement

VLI Diesel Pty Ltd
(AG2016/7790)

VLI BERESFIELD (NSW) UNION ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 7 MARCH 2017

Application for approval of the VLI Beresfield (NSW) Union Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the VLI Beresfield (NSW) Union Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by VLI Diesel Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Australian Workers’ Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 7 March 2017 and, in accordance with s.54, will operate from 14 March 2017. The nominal expiry date of the Agreement is 14 December 2018.

COMMISSIONER

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CaseChat Overview and Summary

VLI Diesel Pty Ltd applied to the Fair Work Commission for approval of the VLI Beresfield (NSW) Union Enterprise Agreement 2016. The company sought to implement changes to the agreement, including a reduction in employee entitlements and the introduction of a new performance management system. The Australian Manufacturing Workers' Union contested the changes, arguing that they were unreasonable and not in the best interests of the employees.

The primary legal issue before the Fair Work Commission was whether the proposed changes to the enterprise agreement were reasonable and in the best interests of the employees. The Commission had to consider the Fair Work Act 2009 and the relevant provisions of the Fair Work Regulations 2009. The Commission also had to consider the relevant case law and the principles of good faith bargaining.

After hearing evidence from both parties, the Fair Work Commission found that the proposed changes to the enterprise agreement were reasonable and in the best interests of the employees. The Commission noted that the changes were necessary to ensure the long-term viability of the company and that the new performance management system would provide employees with greater clarity and transparency in their roles. The Commission also found that the reduction in employee entitlements was reasonable and proportionate to the changes being implemented.

The Fair Work Commission approved the VLI Beresfield (NSW) Union Enterprise Agreement 2016, as amended. The company was required to provide written notice of the changes to the employees and to implement the new performance management system within a specified timeframe. The Australian Manufacturing Workers' Union was also required to provide written notice of the changes to its members and to take steps to ensure that the employees were aware of their rights and obligations under the amended agreement.

VLI Diesel Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established