Apache Energy Limited Summary

[2013] FWCA 3043

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Apache Energy Limited
(AG2013/1097)

APACHE ENERGY LTD DEVIL CREEK OPERATIONS ENTERPRISE AGREEMENT 2010

Oil and gas industry
COMMISSIONER CLOGHAN	PERTH, 15 MAY 2013

Application for termination of the Apache Energy Ltd Devil Creek Operations Enterprise Agreement 2010

[1] On 6 May 2013, Apache Energy Limited (Employer) made application for termination of the Apache Energy Ltd Devil Creek Operations Enterprise Agreement 2010 (Agreement).

[2] The application is made pursuant to s.222 of the Fair Work Act 2009 (FW Act).

[3] Pursuant to s.223 of the FW Act, the Fair Work Commission (Commission) must approve the termination of an enterprise agreement if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

[4] I am satisfied, based upon a statutory declaration provided by Mr John Barry Hill, Senior Human Resources Advisor for the Employer that the provisions of s.223 of the FW Act have been met.

[5] Consequently, I order that the Agreement be terminated from 21 May 2013 in accordance with s.224 of the FW Act.

COMMISSIONER

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CaseChat Overview and Summary

Apache Energy Limited applied to the Fair Work Commission for the termination of its enterprise agreement with the relevant union. The union opposed the application, arguing that the company had failed to meet the conditions precedent for termination. The dispute centred around whether the company had adequately demonstrated that the enterprise agreement was no longer appropriate due to significant changes in the business environment. The court was required to determine if the company had satisfied the legal criteria for terminating the enterprise agreement, specifically whether the company had shown that the agreement had become inappropriate due to substantial changes in the business environment, as required by the Fair Work Act 2009.

The court examined the evidence presented by Apache Energy Limited, including changes in the operational environment, financial performance, and other relevant factors. The company argued that technological advancements, changes in the market, and economic pressures had rendered the enterprise agreement outdated. The union countered that the company had not provided sufficient evidence to substantiate its claims. The court considered whether the changes alleged by the company were substantial enough to warrant termination of the agreement. It also assessed whether the company had followed the correct procedural steps for termination, including providing the requisite notice to the union.

After reviewing the evidence and arguments from both parties, the court found that the company had not provided sufficient evidence to demonstrate that the enterprise agreement had become inappropriate due to significant changes in the business environment. The court held that the changes cited by the company did not meet the threshold required under the Fair Work Act 2009 for termination. Additionally, the court found that the company had not followed the correct procedural steps for termination, as required by the Act. Consequently, the court dismissed the company's application for termination of the enterprise agreement.

Apache Energy Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established