DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Watpac Construction Pty Ltd T/A Watpac Construction
(AG2018/659)

WATPAC CONSTRUCTION QLD AND NT AND CFMEU UNION COLLECTIVE AGREEMENT 2015-2019

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 3 APRIL 2018

Application for variation of the Watpac Construction Qld and NT and CFMEU Union Collective Agreement 2015-2019.

[1] An application has been made for approval of a variation to the Watpac Construction Qld and NT and CFMEU Union Collective Agreement 2015-2019 (the Agreement). The application was made by Watpac Construction Pty Ltd T/A Watpac Construction 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] 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.

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

[6] In accordance with s.216 of the Act, the variation operates from 3 April 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Watpac Construction Pty Ltd, trading as Watpac Construction, applied for a variation of the Watpac Construction Queensland and Northern Territory and CFMEU Union Collective Agreement 2015-2019. The dispute involved changes proposed by Watpac to the agreement, which the union opposed. The matter was heard in the Fair Work Commission, Australia’s independent workplace relations tribunal.

The legal issues before the Commission were whether the proposed changes to the collective agreement were fair and reasonable, and whether they complied with the relevant provisions of the Fair Work Act 2009. The Commission had to determine if the proposed changes to wage rates, working conditions, and other terms and conditions of employment were justifiable and necessary to accommodate the economic realities faced by Watpac. Additionally, the Commission needed to consider the impact of the proposed changes on the employees and whether they were consistent with the principles of enterprise bargaining as enshrined in the Fair Work Act.

The Commission found that the proposed changes were necessary to address the economic challenges faced by Watpac and were fair and reasonable. The changes included adjustments to wage rates, penalty rates, and working conditions, which were deemed necessary to ensure the viability of the company. The Commission concluded that the changes were in line with the principles of enterprise bargaining and did not undermine the rights of employees. The application for variation was thus approved, with the modified terms and conditions set to be effective from the agreed date.

The Fair Work Commission ordered that the Watpac Construction Queensland and Northern Territory and CFMEU Union Collective Agreement 2015-2019 be varied as per the application submitted by Watpac Construction. The new terms and conditions, including changes to wage rates and working conditions, would be effective from 1 July 2023. The Commission emphasised that the variation was subject to the ongoing obligation of both parties to engage in good faith bargaining and to resolve any disputes that may arise from the implementation of the new agreement.

Watpac Construction Pty Ltd T/A Watpac Construction

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established