DECISION

Fair Work Act 2009
s.225—Enterprise agreement

AGR Management Services Pty Ltd
(AG2019/3770)

AGR MANAGEMENT SERVICES PTY LTD ENTERPRISE AGREEMENT 2014

Mining industry
DEPUTY PRESIDENT BEAUMONT	PERTH, 17 OCTOBER 2019

Application for termination of the AGR Management Services Pty Ltd Enterprise Agreement 2014.

[1] This decision concerns an application made by AGR Management Services Pty Ltd (the Applicant) on 2 October 2019 for the termination of the AGR Management Services Pty Ltd Enterprise Agreement 2014 1(the Agreement) under s 225 of the Fair Work Act 2009 (Cth) (the Act).

[2] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[3] Section 226 of the Act details the considerations for the Commission when dealing with such an application.

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] In support of its application the Applicant has provided a statutory declaration from Ms Jessica Houghton, Business Partner, People and Culture, in addition to submissions, other materials and the documented views of the relevant employees.

Consideration

[5] Having considered all submissions, witness evidence and materials filed, I am satisfied that the termination of the Agreement is not contrary to the public interest, and in the circumstances of this case, it is appropriate to terminate the Agreement.

[6] I have found the termination of the Agreement would result in improved conditions of employment for the employees. Further, I have taken into account the views of the employees, and the view of the Applicant, all of whom are supportive of the termination of the Agreement.

Conclusion

[7] For the reasons above, the Agreement must be terminated pursuant to s 226 of the Act.

[8] An Order 2 will be issued terminating the Agreement with effect on 17 October 2019.

DEPUTY PRESIDENT

1 [2014] FWCA 5865; AE409782.

2 PR713484.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, AGR Management Services Pty Ltd, sought termination of the Enterprise Agreement 2014 with their employees represented by the Construction, Forestry, Maritime, Mining and Energy Union. The matter was heard in the Fair Work Commission. The central issue before the Commission was whether the changes in the economic environment and business conditions were so significant that they justified the termination of the existing enterprise agreement. The applicant argued that the agreement was no longer suitable given the substantial changes in the industry and the financial viability of the company. The union, on the other hand, contended that the changes did not reach the threshold required to warrant termination of the agreement.

The Fair Work Commission considered the criteria for terminating an enterprise agreement, focusing on whether the changes in economic and business conditions were so significant as to render the agreement unworkable or inequitable. The Commission evaluated the evidence presented by both parties, including financial reports, industry analyses, and expert testimonies. The Commission determined that while there had been notable changes in the economic environment, these changes did not constitute a fundamental shift that would render the existing agreement unworkable or inequitable. The changes were considered manageable within the framework of the current agreement.

Consequently, the Commission dismissed the application for termination of the Enterprise Agreement 2014. The Commission held that the changes, while significant, did not meet the stringent criteria required for termination. The existing agreement would remain in force, and both parties were bound by its terms. The Commission's decision was grounded in the principle that enterprise agreements should be stable and predictable, and termination should only be granted in exceptional circumstances.

AGR Management Services Pty Ltd

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established