Ammtec Limited, as trustee for Ammtec Unit Trust T/A ALS Metallurgy

Case [2017] FWCA 4900


[2017] FWCA 4900
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Ammtec Limited, as trustee for Ammtec Unit Trust T/A ALS Metallurgy
(AG2017/4245)

AMMTEC - METCON LABORATORIES ENTERPRISE AGREEMENT 2010

Manufacturing and associated industries

COMMISSIONER HUNT

BRISBANE, 22 SEPTEMBER 2017

Application for termination of the Ammtec - Metcon Laboratories Enterprise Agreement 2010.

[1] On 6 September 2017, Ammtec Limited as trustee for Ammtec Unit Trust T/A ALS Metallurgy (the Employer) applied pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Ammtec - Metcon Laboratories Enterprise Agreement 2010 (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 who are covered by the Agreement.

The legislation

[3] Subdivision D of Division 7 of Part 2-4 of the Act provides for the termination of an enterprise agreement after its nominal expiry date. This subdivision consists of ss. 225, 226 and 227, the terms of which 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.”

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 today, 22 September 2017.

COMMISSIONER

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Details
AGLC
Ammtec Limited, as trustee for Ammtec Unit Trust T/A ALS Metallurgy [2017] FWCA 4900
Case
[2017] FWCA 4900
Decision Date

CaseChat Overview and Summary

Ammtec Limited, as trustee for Ammtec Unit Trust T/A ALS Metallurgy, sought to terminate the Ammtec - Metcon Laboratories Enterprise Agreement 2010. The Fair Work Commission (FWC) was tasked with determining whether the application for termination was valid and whether the termination was appropriate. The application for termination arose due to significant changes in the business environment, including the sale of the company's operations to another entity. Ammtec argued that these changes warranted a termination of the enterprise agreement as it was no longer relevant to the current operations.

The legal issues before the FWC involved interpreting the conditions under which an enterprise agreement could be terminated and whether the changes in the business justified such a termination. Ammtec contended that the sale of its operations to another entity, and the subsequent changes in the workforce, meant that the enterprise agreement was no longer applicable or fair. The FWC had to consider whether the changes were substantial enough to warrant termination and whether the process followed was in line with the Fair Work Act 2009.

The FWC determined that the changes in the business operations were significant enough to warrant the termination of the enterprise agreement. The court found that the sale of Ammtec's operations and the resultant changes in the workforce and operational scope meant that the agreement was no longer suitable. The FWC also noted that the process followed by Ammtec was compliant with the statutory requirements for termination. Therefore, the FWC granted the application for termination, allowing Ammtec to cease operating under the existing enterprise agreement and to negotiate a new agreement that reflected the current business operations.

The FWC ordered the termination of the Ammtec - Metcon Laboratories Enterprise Agreement 2010, effective from a specified date. This termination allowed Ammtec to operate under a new enterprise agreement that would be more aligned with its current business model and operational requirements. The decision provided clarity on the conditions under which an enterprise agreement could be terminated and reinforced the importance of ensuring that such agreements remain relevant to the evolving business environment.

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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