DECISION

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

Austin Engineering Ltd
(AG2018/4875)

AUSTIN ENGINEERING LTD ENTERPRISE AGREEMENT 2014-2016

Manufacturing and associated industries
COMMISSIONER RIORDAN	SYDNEY, 10 SEPTEMBER 2018

Application for termination of the Austin Engineering Ltd - Enterprise Agreement 2014-2016.

[1] On 29 August 2018, Austin Engineering Ltd made an application to terminate the Austin Engineering Ltd – Enterprise Agreement 2014-2016 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 10 September 2018.

COMMISSIONER

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CaseChat Overview and Summary

In the matter of the Fair Work Commission, the Australian Manufacturing Workers' Union sought an application for termination of the Austin Engineering Ltd - Enterprise Agreement 2014-2016. The applicant argued that changes in the economic environment and the employer's financial position warranted a review of the terms and conditions set out in the agreement. The employer, Austin Engineering Ltd, opposed the application, asserting that the existing agreement remained fair and reasonable given the circumstances.

The legal issues before the court included whether there had been a significant change in circumstances that would warrant terminating the enterprise agreement, and whether any such change would justify the termination of the agreement as opposed to its variation. The court had to consider the substantial change test as outlined in the Fair Work Act 2009, examining whether there had been a fundamental alteration in the economic or business environment that could justify terminating the existing agreement.

The Fair Work Commission found that there had been a significant change in the economic environment, which impacted the employer's financial viability and its ability to meet the terms of the enterprise agreement. The court concluded that the changes were not merely temporary but were likely to be enduring. Consequently, the Commission decided that the agreement should be terminated. The employer was ordered to provide notice of termination to the employees and to comply with the provisions of the Fair Work Act in relation to the termination process.

Austin Engineering Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established