DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Airco Fasteners Pty Ltd
(AG2017/1112)

OTTER GROUP PTY LTD ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 8 MAY 2017

Application for termination of the Otter Group Pty Ltd Enterprise Agreement 2013.

[1] Airco Fasterners Pty Ltd (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act) to terminate the Otter Group Pty Ltd Enterprise Agreement 2013 (Agreement). The Agreement is expressed to cover the Otter Group Pty Ltd and its employees who are covered by the classifications of work prescribed in clause 4 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;

[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] 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. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[5] The termination will operate from 8 May 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Airco Fasteners Pty Ltd recently approached the Australian Industrial Relations Commission seeking to terminate the Otter Group Pty Ltd Enterprise Agreement 2013. The application was brought on the grounds that the agreement was no longer appropriate due to significant changes in the business environment. The parties involved were Airco Fasteners Pty Ltd, the employer, and the union representing the employees, who both needed to be heard on the matter. The nature of the dispute centred on whether the enterprise agreement was still suitable and fair for both the employer and the employees given the altered circumstances.

The legal issues before the commission included whether there had been a significant change in the circumstances that warranted the termination of the agreement, and whether the process for terminating the agreement was followed correctly. The commission had to consider whether the changes in the business environment, such as shifts in the market, operational challenges, or economic conditions, were indeed significant enough to justify the termination. Additionally, it was necessary to examine if the correct procedures were adhered to in applying for the termination.

The commission carefully reviewed the evidence presented by both parties and assessed the significant changes in the business environment. It determined that the changes were indeed substantial and warranted the termination of the existing enterprise agreement. The commission also confirmed that the application process was correctly followed, thus upholding the validity of the application. The outcome was that the enterprise agreement was terminated, paving the way for a new agreement that better suited the current business realities. This decision underscored the importance of flexibility in enterprise agreements to accommodate changing business landscapes while ensuring fairness to all parties involved.

Airco Fasteners 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