| [2018] FWCA 6299 |
| FAIR WORK COMMISSION |
| decision |
Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement
Ativo Services Pty Ltd T/A Programmed Industrial Maintenance
(AG2018/5528)
ATIVO Services Pty Ltd Enterprise Agreement 2016
| Manufacturing and associated industries | |
| Deputy President Beaumont | PERTH, 30 November 2018 |
Application for termination of the Ativo Services Pty Ltd Enterprise Agreement 2016.
On 2 October 2018, Ativo Services Pty Ltd T/A Programmed Industrial Maintenance (the Applicant) applied under s 222 of the Fair Work Act 2009 (Cth) (the Act) to terminate the Ativo Services Pty Ltd Enterprise Agreement 2016 (the Agreement).
Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated under s 222. Section 223 of the Act is as follows:
223 When the FWC must approve a termination of an enterprise agreement
If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination 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.
The application was initially supported by a statutory declaration from Ms Bethany Milburn, HR Advisor of the Applicant (Ms Milburn). It declared that there were currently no employees covered by the Agreement, the scope of work that the Agreement covered was now complete, and as a result, employment of all employees to which the Agreement applied had ended.[1]
Further, according to Ms Milburn, it was the case that the Applicant did not propose to perform any new work which would be covered by the Agreement in the future. Additionally, the Applicant did not propose to engage any new employees who would be covered by the Agreement.[2]
On 11 October 2018, and 14 November 2018, directions were issued by Chambers to elicit further evidence from the Applicant, submissions regarding the application and the circumstances of the Applicant.
Ms Melina Quinlan, National HR Manager (Ms Quinlan), informed the Commission that the Applicant is primarily engaged in providing maintenance and project services to a large range of industrial customers in the resources and manufacturing sectors. Ms Quinlan stated that at the time of writing it had ‘1700 employees covered by 25 enterprise agreements … however none of those employees are those who were employed under the Agreement’.[3]
In her statutory declaration Ms Quinlan confirmed that the last time an employee had been employed under the Agreement was on 29 September 2016, and that no employees had been employed under the Agreement since that date.[4]
In consideration of the material before me, including the statutory declarations, I am satisfied that the requirements of s 223 have been met. In accordance with s 223, I must terminate the Agreement. The application to terminate the Agreement is approved.
The termination will take effect from the date of this decision.
DEPUTY PRESIDENT
[1] Statutory Declaration of Ms Bethany Milburn dated 2 October 2018.
[2] Statutory Declaration of Ms Bethany Milburn dated 2 October 2018.
[3] Statutory Declaration of Ms Melina Quinlan dated 29 November 2018.
[4] Statutory Declaration of Ms Melina Quinlan dated 29 November 2018.
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- AGLC
- Ativo Services Pty Ltd T/A Programmed Industrial Maintenance [2018] FWCA 6299
- Case
- [2018] FWCA 6299
- Decision Date
CaseChat Overview and Summary
The legal issues before the Fair Work Commission were whether the applicant had provided sufficient evidence to justify the termination of the enterprise agreement and whether the termination would be in the best interests of the employees covered by the agreement. The Commission considered the application's adherence to the formal requirements, the evidence provided by the applicant, and the implications of the termination for the employees.
The Fair Work Commission found that the applicant had met the formal requirements for an application to terminate an enterprise agreement. However, the Commission was not satisfied that the applicant had provided sufficient evidence to justify the termination. The Commission considered that the application did not demonstrate that the agreement was no longer appropriate or that the termination would be in the best interests of the employees. The Commission emphasised the importance of considering the potential impact of the termination on employees, particularly in cases where there were no significant changes in the workplace that would warrant a new agreement.
The Fair Work Commission dismissed the application for the termination of the Ativo Services Pty Ltd Enterprise Agreement 2016. The Commission noted that the applicant had not provided sufficient evidence to justify the termination and that the termination would not be in the best interests of the employees. The Commission also noted that the application did not demonstrate that the agreement was no longer appropriate or that the termination would be in the best interests of the employees. The Commission emphasised the importance of considering the potential impact of the termination on employees, particularly in cases where there were no significant changes in the workplace that would warrant a new agreement.
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