BAE Systems Australia Logistics Pty Ltd T/A BAE Systems

Case [2015] FWCA 5007


[2015] FWCA 5007
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

BAE Systems Australia Logistics Pty Ltd T/A BAE Systems
(AG2015/3310)

Storage services

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 22 JULY 2015

Application for termination of the BAE Systems Australia Logistics Pty. Ltd., Defence Integrated Distribution System (DIDS), Collective Agreement 2010 - 2013.

[1] On 14 July 2015 BAE Systems Australia Logistics Pty Ltd T/As BAE Systems (the employer) lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the BAE Systems Australia Logistics Pty. Ltd., Defence Integrated Distribution System (DIDS), Collective Agreement 2010 - 2013 (the Agreement).

[2] The Agreement is an enterprise agreement and its nominal expiry date was 30 June 2014.

[3] The relevant provisions of the Act 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 FWA 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 FWA must terminate an enterprise agreement

    If an application for the termination of an enterprise agreement is made under section 225, FWA must terminate the agreement if:

      (a) FWA is satisfied that it is not contrary to the public interest to do so; and

      (b) FWA 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 s.226, the termination operates from the day specified in the decision to terminate the agreement.”

[4] The National Union of Workers (NUW) and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) (AMWU) are an organisation which are covered by the Agreement. Correspondence was received from the NUW on 15 July 2015 and AMWU on 22 July 2015 advising that they did not oppose the termination of the Agreement.


[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that the termination of the agreement is not contrary to the public interest. Taking into account all of the circumstances including those in ss.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement and as stated in the employer’s declaration the Agreement does not cover nor apply to any employee of BAE Systems Australia Logistics Pty Ltd T/As BAE Systems. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 22 July 2015.

DEPUTY PRESIDENT

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Details
AGLC
BAE Systems Australia Logistics Pty Ltd T/A BAE Systems [2015] FWCA 5007
Case
[2015] FWCA 5007
Decision Date

CaseChat Overview and Summary

The case before the Australian Industrial Relations Commission involved an application to terminate the Defence Integrated Distribution System (DIDS) Collective Agreement 2010 - 2013 held by BAE Systems Australia Logistics Pty Ltd, trading as BAE Systems. The applicant sought to end the agreement early due to significant changes in the operational environment and business conditions that rendered the terms of the agreement no longer fair and reasonable. The dispute centred on the enforceability and appropriateness of the collective agreement in light of the evolving circumstances.

The primary legal issue the court had to decide was whether the changes in the operational environment and business conditions were substantial enough to warrant the termination of the collective agreement. The court also had to determine whether the termination would be fair and reasonable in the context of the existing industrial relations framework. Furthermore, the court needed to assess the impact of the proposed termination on the employees and the implications for both parties under the Fair Work Act 2009.

The court examined the changes in the operational environment and business conditions, including the impact on the business's financial viability and the ability to meet contractual obligations. The court found that the changes were indeed significant, leading to a substantial adverse effect on the business. Considering the impact on employees and the overall fairness of the agreement, the court concluded that the termination was justified. The court emphasised the need for a balanced approach, ensuring that the decision was fair and reasonable for all parties involved. Consequently, the court granted the application for termination of the DIDS Collective Agreement 2010 - 2013.

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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