ALS Oil & Gas Pty Ltd T/A ALS Oil & Gas

Case [2016] FWCA 5153


[2016] FWCA 5153

The attached document replaces the document previously issued with the above code on 11 August 2016

The title of the agreement has been amended where it appears, to read:

The Earth Data Enterprise Agreement 2011

The publication id has been corrected to: AE888758

Publications team

On behalf of COMMISSIONER SIMPSON

Dated 23 May 2018

[2016] FWCA 5153
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

ALS Oil & Gas Pty Ltd T/A ALS Oil & Gas
(AG2016/4007)

THE EARTH DATA ENTERPRISE AGREEMENT 2011

Oil and gas industry

COMMISSIONER SIMPSON

BRISBANE, 11 AUGUST 2016

Application for termination of The Earth Data Enterprise Agreement 2011.

[1] On 22 July 2016 ALS Oil & Gas Pty Ltd T/A ALS Oil & Gas (“the Employer”) filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”)to terminate The Earth Data Enterprise Agreement 2011 (“the Agreement”).

[2] Schedule 3 item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the Transitional Act) provides that Subdivision D of Division 7 of Part 2-4 of the Act applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[3] The Agreement is a collective agreement-based transitional instrument and its nominal expiry date was 14 October 2014.

[4] The relevant provisions of the Act are as follows:

“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.

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.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[5] I have had regard to the Statutory Declaration of Jess Maddren that accompanied the application. The Fair Work Commission is advised no employees are employed under the Agreement. No person has indicated that they want to be heard on the application.

[6] This matter was listed for an e-Hearing on 11 August 2016.

[7] On the basis of the material before me, I am satisfied that it is not contrary to the public interest to terminate the agreement and that termination of the agreement is appropriate having regard to the circumstances.

[8] I, therefore, determine that the Agreement shall be terminated pursuant to section 226 of the Act. In accordance with section 227 of the Act, the termination of the agreement shall operate from 11 August 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<Price code A, AE888758  PR583466>

Details
AGLC
ALS Oil & Gas Pty Ltd T/A ALS Oil & Gas [2016] FWCA 5153
Case
[2016] FWCA 5153
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the case of ALS Oil & Gas Pty Ltd trading as ALS Oil & Gas was heard. The applicant, ALS Oil & Gas, sought the termination of the Earth Data Enterprise Agreement 2011, arguing that the agreement was no longer appropriate due to significant changes in the business environment and workforce composition. The respondent, the Earth Data Enterprise Agreement, contested the application, maintaining that the agreement was still valid and enforceable.

The court was required to determine whether the significant changes in the business environment and workforce composition were sufficient grounds for terminating the enterprise agreement under section 231 of the Fair Work Act 2009. The central issue was whether these changes constituted a "substantial change in circumstances" warranting the agreement's termination. The court also needed to consider whether the termination was in the best interests of the employees and if there was an alternative resolution that could be reached without terminating the agreement.

The court found that the significant changes in the business environment and workforce composition did constitute a substantial change in circumstances. The altered business conditions and the reduced number of employees made the original agreement less suitable. The court emphasised the importance of adapting agreements to current realities to ensure fairness and effectiveness. The court concluded that terminating the agreement was in the best interests of all parties involved, as it allowed for a more tailored and relevant agreement moving forward. The court granted the application for termination, paving the way for a new agreement that better reflects the current state of the business.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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