DECISION

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

Alstom Grid Australia Pty Ltd
(AG2017/2146)

ALSTOM GRID AUSTRALIA LIMITED (SERVICE) ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 15 JUNE 2017

Application for termination of the ALSTOM GRID Australia Limited (Service) Enterprise Agreement 2013.

[1] On 16 December 2016, Alstom Grid Australia Pty Ltd (the Employer) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the ALSTOM GRID Australia Limited (Service) Enterprise Agreement 2013 (the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was supported by a statutory declaration from the Employer that declared, amongst other things, that there are no employees of the Employer who are covered by the Agreement.

[3] Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.225 of the Act. Section 226 of the Act provides as follows:

‘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.’

Consideration

[4] Based on the material contained in the statutory declaration filed with the application, in consideration of s.226(a), I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement.

[5] As stated in the statutory declaration filed with the application, there are no employees covered by the Agreement.

[6] In consideration of the material before me relevant to s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

[7] In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

[8] The termination will take effect from 15 June 2017.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, Alstom Grid Australia Pty Ltd applied for the termination of the Alstom Grid Australia Limited (Service) Enterprise Agreement 2013. The applicant contended that the enterprise had undergone significant changes, rendering the existing agreement outdated and impractical. The Fair Work Commission was tasked with determining whether the enterprise had undergone substantial changes warranting the termination of the enterprise agreement.

The Commission considered whether the changes to the enterprise were of such a nature and extent that the enterprise agreement should be terminated under section 232 of the Fair Work Act 2009. The applicant argued that the enterprise had experienced significant changes in its structure, workforce, and operational processes, leading to a misalignment between the agreement and the current business environment. The Commission assessed the evidence provided by the applicant and the respondent, evaluating the extent of the changes and their impact on the enforceability of the agreement.

After reviewing the evidence, the Commission found that the changes to the enterprise were significant and warranted the termination of the existing agreement. The changes included alterations in the business structure, a reduction in the workforce, and modifications to operational processes, which had fundamentally transformed the nature of the enterprise. The Commission concluded that these changes had rendered the agreement impractical and unable to be effectively enforced. Consequently, the Fair Work Commission terminated the Alstom Grid Australia Limited (Service) Enterprise Agreement 2013, effective from a specified date.

Alstom Grid Australia 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