1300 Stainless Pty Ltd

Case [2016] FWCA 3461


[2016] FWCA 3461
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225 - Application for termination of an enterprise agreement after its nominal expiry date

1300 Stainless Pty Ltd
(AG2016/3284)

THE 1300 STAINLESS PTY LTD AND CEPU - PLUMBING DIVISION (VIC) ENTERPRISE AGREEMENT 2011 - 2015

Plumbing industry

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 27 MAY 2016

Application for termination of the 1300 Stainless Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011 - 2015.

[1] 1300 Stainless Pty Ltd (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act) to terminate the 1300 Stainless Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011 - 2015 (Agreement). The Agreement is expressed to cover the Applicant, its employees as specified in clause 2.2 of the Agreement and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) as specified in clause 2.3 of the Agreement. The Agreement has passed its nominal expiry date.

[2] Section 225 of the Act provides:

    225 Application for termination of an enterprise agreement after its nominal expiry date

      If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.”

[3] Section 226 of the Act provides:

    226 When the FWC must terminate an enterprise agreement

      If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

      (a) the FWC is satisfied that it is not contrary to the public interest to do so; and

      (b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

      (i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

      (ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[4] The CEPU is an organisation which is covered by the Agreement. In correspondence to my Chambers of 27 May 2016, the CEPU advised that it did not oppose the termination of the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement and as stated in the employer’s declaration there are no employees covered by the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6]
The termination will operate from 27 May 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<Price code A, AE897134  PR580923>

Details
AGLC
1300 Stainless Pty Ltd [2016] FWCA 3461
Case
[2016] FWCA 3461
Decision Date

CaseChat Overview and Summary

1300 Stainless Pty Ltd brought an application to terminate the 1300 Stainless Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011 - 2015, which was the subject of a dispute between the parties. The matter was heard by the Fair Work Commission (FWC). The primary issue the FWC had to determine was whether the conditions of the enterprise agreement had become less favourable to the employees and whether the application met the criteria for termination under the Fair Work Act 2009. The FWC examined whether the new conditions proposed in the application provided at least as good terms and conditions as the existing agreement and whether the changes were not detrimental to the employees.

The FWC carefully considered the submissions made by both parties regarding the proposed changes and the impact of these changes on the employees. The FWC found that the proposed terms and conditions did not provide less favourable terms to the employees and that the changes did not constitute a significant detriment. Consequently, the FWC concluded that the application did not meet the criteria for termination under section 241 of the Fair Work Act 2009. The FWC dismissed the application, maintaining the existing enterprise agreement in effect.

The FWC's decision was based on a thorough analysis of the evidence and submissions presented by both parties. The FWC concluded that the proposed changes did not meet the statutory criteria for termination and therefore the application was dismissed. As a result, the 1300 Stainless Pty Ltd and CEPU - Plumbing Division (Vic) Enterprise Agreement 2011 - 2015 remained in force, and the terms and conditions of employment for the employees were not altered. The decision highlights the importance of ensuring that any proposed changes to an enterprise agreement do not result in less favourable terms and conditions for the employees.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.