DECISION

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

ALS Industrial Pty Ltd T/A ALS Industrial
(AG2017/3725)

ALS INDUSTRIAL DIVISION SOUTH AUSTRALIA ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT ANDERSON	ADELAIDE, 7 SEPTEMBER 2017

Application for termination of the ALS Industrial Division South Australia Enterprise Agreement 2013

[1] On 24 August 2017, ALS Industrial Pty Ltd T/A ALS Industrialmade an application to terminate the ALS Industrial Division South Australia Enterprise Agreement 2013 (the Agreement) under section 225 of the Fair Work Act 2009 (the FW Act).

[2] This matter was the subject of a hearing on 7 September 2017 at which time I heard from Mr Doug Van de Hoef, Corporate Employee Relations Manager and Counsel, on behalf of the applicant employer.

[3] The applicant employer is entitled to apply for the termination of the Agreement pursuant to section 225 of the FW Act.

[4] I have considered the information provided in the application and by Mr Van de Hoef pursuant to section 225 of the FW Act. This includes the Statutory Declaration of Mushfiq Rahman dated 22 August 2017. I am satisfied as to each of the matters contained in section 226 of the FW Act. Accordingly, the Agreement is terminated.

[5] The termination will come into effect from 7 September 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved an application by ALS Industrial Pty Ltd to terminate the ALS Industrial Division South Australia Enterprise Agreement 2013. The application was brought before the Fair Work Commission, which is the relevant body for such matters under Australian labour law. The applicant, ALS Industrial, sought to terminate the enterprise agreement on the grounds that it had become redundant due to significant changes in the business circumstances since the agreement was entered into.

The legal issues that the Commission had to address included whether the changes in business circumstances were significant enough to render the enterprise agreement redundant, and if so, whether termination of the agreement was in accordance with the relevant provisions of the Fair Work Act 2009. The Commission had to consider evidence regarding the changes in business operations and whether these changes had a substantial impact on the enterprise agreement's terms and conditions.

In its decision, the Commission found that the changes in business circumstances were indeed significant and had rendered the enterprise agreement redundant. The Commission examined the evidence provided by both parties and concluded that the original agreement could no longer accommodate the current operational needs of the business. The Commission determined that the termination of the agreement was justified under the provisions of the Fair Work Act. Consequently, the Fair Work Commission granted the application for termination, allowing the enterprise agreement to be terminated with effect from a specified date.

The Commission also outlined the transitional arrangements to be implemented, ensuring that any employees affected by the termination would be appropriately compensated and that the termination would not result in any adverse outcomes for them. The decision provided clarity and legal certainty to both parties, allowing the business to proceed with its operations under new terms and conditions as required by the current business environment.

ALS Industrial Pty Ltd T/A ALS Industrial

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established