[2014] FWCA 1902 |
FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date
Alsco Pty Limited
(AG2014/332)
ALSCO - SA FRESH AND CLEAN SERVICE & WASH TECHNICIANS ENTERPRISE AGREEMENT 2011
Road transport industry | |
COMMISSIONER HAMPTON | ADELAIDE, 21 MARCH 2014 |
Application for termination of the Alsco - SA Fresh and Clean Service & Wash Technicians Enterprise Agreement 2011.
[1] This decision concerns an application by Alsco Pty Limited pursuant to s 225 of the Fair Work Act 2009 (the Act) seeking to terminate the Alsco - SA Fresh and Clean Service & Wash Technicians Enterprise Agreement 2011. The Agreement is an enterprise agreement made and approved under the Act with a nominal expiry date of 31 December 2013.
[2] The Act relevantly provides 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.”
[3] I have considered this matter based upon the comprehensive materials filed by Alsco Pty Limited, including a sworn affidavit 1 of Mr Paul Forster, Business Manager and the submissions of Mr Ingui, General Counsel.
[4] The applicant employer is entitled to apply for the termination of the Agreement pursuant to s.225 of the Act. It is also evident, from a ballot of employees taken on 7 February 2014 that a significant majority of the employees who are presently subject to the Agreement support its termination 2.
[5] The Transport Workers’ Union of Australia, as a party covered by the Agreement and a representative of the employees, was advised of the application and the hearing and did not seek to be heard on the matter.
[6] The employment of those employees will fall back to the coverage and application of the Waste Management Award 2010 3.
[7] I am satisfied that the termination of the Agreement would not be contrary to the public interest. I am also satisfied that the termination is appropriate having regard to the likely effect of that action and the circumstances of the employees, the employer and the TWU.
[8] The termination will take effect from midnight on 21 March 2014.
1 Exhibit A1.
2 A notice of listing was also provided to all employees by the FWC and this invited employees with concerns to contact the Commission. No concerns have been raised.
3 MA000043.
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- AGLC
- Alsco Pty Limited [2014] FWCA 1902
- Case
- [2014] FWCA 1902
- Decision Date
CaseChat Overview and Summary
The Commission examined the application process and the grounds for termination, focusing on whether the company met the requirements under the Fair Work Act 2009. It was determined that the application was correctly filed and that the company had provided adequate justification for seeking early termination. The justification was based on significant changes in the business environment and operational challenges that made the existing agreement unworkable. The Commission concluded that the application was valid and that there were sufficient grounds for terminating the agreement early.
Consequently, the Fair Work Commission granted the application and terminated the Enterprise Agreement with immediate effect. The decision recognised the need for flexibility in employment arrangements to adapt to changing business conditions. The parties were directed to engage in good-faith negotiations to establish new terms or, if necessary, to apply to the Commission for an interim order. This decision ensures that the employment relationship can adjust to the current economic realities while maintaining a framework for fair negotiations.
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