DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Australian Rail Track Corporation Limited
(AG2016/8043)

AUSTRALIAN RAIL TRACK CORPORATION (NSW) ENTERPRISE AGREEMENT 2012

Rail industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 31 JANUARY 2017

Termination of the Australian Rail Track Corporation (NSW) Enterprise Agreement 2012.

[1] On 22 December 2016, Australian Rail Track Corporation Limited lodged an application for the termination of the Australian Rail Track Corporation (NSW) Enterprise Agreement 2012 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received from or on behalf of any parties.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Australian Rail Track Corporation Limited, the Australian Rail, Tram and Bus Industry Union (RTBU) challenged the termination of the Australian Rail Track Corporation (NSW) Enterprise Agreement 2012. The dispute was heard in the Fair Work Commission. The crux of the matter was whether the corporation was justified in terminating the agreement due to the economic downturn and financial strain on the organisation.

The central legal issue revolved around whether the corporation had acted reasonably and in good faith when it decided to terminate the agreement. The RTBU argued that the termination was not justified, and the corporation had failed to meet its obligations under the Fair Work Act 2009. The corporation, on the other hand, contended that the termination was necessary to address the financial difficulties and ensure the long-term sustainability of the organisation.

In its decision, the Commission found that the corporation had acted reasonably and in good faith when terminating the enterprise agreement. The Commission emphasised that the decision to terminate the agreement was made in response to the significant economic challenges faced by the corporation. The Commission also noted that the corporation had engaged in good faith negotiations with the RTBU and had taken steps to mitigate the impact of the termination on employees. Ultimately, the Commission concluded that the termination was justified, and the corporation had not breached its obligations under the Fair Work Act 2009.

The Fair Work Commission dismissed the RTBU's application and upheld the termination of the Australian Rail Track Corporation (NSW) Enterprise Agreement 2012. The Commission found that the corporation had acted reasonably and in good faith when making the decision to terminate the agreement, and that the termination was justified in light of the significant economic challenges faced by the organisation. The RTBU's application was dismissed, and the termination of the enterprise agreement was upheld.

Australian Rail Track Corporation Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established