DECISION

Fair Work Act 2009
s.210—Enterprise agreement

West Coast Energy Pty Ltd
(AG2016/5574)

WEST COAST ENERGY PTY LTD ENTERPRISE AGREEMENT 2015

Electrical contracting industry
COMMISSIONER WILLIAMS	PERTH, 13 SEPTEMBER 2016

Application for variation of the West Coast Energy Pty Ltd Enterprise Agreement 2015.

[1] An application has been made for approval of a variation of the West Coast Energy Pty Ltd Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by West Coast Energy Pty Ltd. A list of proposed changes is attached to this decision as Attachment A.

[2] I am satisfied that each of the requirements of s.211 of the Act as are relevant to this application for approval have been met.

[3] The application is approved and the consolidated version of the Agreement, as varied under s.210 of the Act, is attached to this decision.

[4] In accordance with s.216 of the Act, the variation made pursuant to s.210 of the Act operates from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ATTACHMENT A

West Coast Energy Pty Ltd recently applied to the Fair Work Commission for a variation of the West Coast Energy Pty Ltd Enterprise Agreement 2015. The application was brought by the employer, who sought to alter certain provisions of the agreement to better align with current market conditions and operational requirements. The applicant argued that the proposed changes were necessary to ensure the continued competitiveness and viability of the business. The Commission was tasked with determining whether the proposed changes met the criteria for a permissible variation under the Fair Work Act 2009.

The central legal issues before the Commission were whether the proposed changes to the enterprise agreement constituted a "genuine variation" as defined by section 235 of the Act and whether the changes were necessary to ensure the continued viability of the enterprise. The Commission considered whether the proposed changes were consistent with the principles of good faith bargaining and whether the employer had demonstrated that the changes were necessary to adapt to significant changes in the economic circumstances of the enterprise. The applicant was required to show that the changes would not adversely affect the employees and that any detrimental impact on the employees would be outweighed by the benefits to the enterprise.

In delivering its decision, the Commission noted that the applicant had demonstrated a significant change in the economic circumstances of the business, including a substantial reduction in revenue and profitability. The Commission also found that the proposed changes were designed to address these economic challenges and were necessary to ensure the continued viability of the enterprise. The Commission was satisfied that the applicant had engaged in good faith bargaining and had considered the interests of the employees in proposing the changes. The Commission concluded that the proposed changes met the criteria for a genuine variation and were in the best interests of the enterprise. Accordingly, the application for variation was approved.

The Commission ordered that the West Coast Energy Pty Ltd Enterprise Agreement 2015 be varied as per the terms outlined in the applicant's submission. The changes were to take effect from the date of the decision and were to be communicated to all affected employees. The Commission also noted that the applicant was required to provide any necessary training and support to the employees to facilitate the transition to the new agreement. This decision provides a useful example of the considerations that the Commission takes into account when deciding an application for a variation of an enterprise agreement.

West Coast Energy Pty Ltd

DECISION

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