BAE Systems Australia Logistics Pty Ltd T/A BAE Systems

Case [2015] FWCA 5008


[2015] FWCA 5008
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
(AG2015/3312)

Manufacturing and associated industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 22 JULY 2015

Application for termination of the BAE Systems Australia Defence Pty Ltd, Albury Wodonga Military Area 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 Defence Pty Ltd, Albury Wodonga Military Area 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 the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) (AMWU) are organisations 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 5008
Case
[2015] FWCA 5008
Decision Date

CaseChat Overview and Summary

BAE Systems Australia Logistics Pty Ltd, trading as BAE Systems, applied to terminate the BAE Systems Australia Defence Pty Ltd, Albury Wodonga Military Area Collective Agreement 2010-2013. The application was heard in the Fair Work Commission, which had jurisdiction over the matter under the Fair Work Act 2009. The dispute centred on the applicability of the existing collective agreement in light of significant changes within the company's operations and the workforce.

The primary legal issue before the Commission was whether the changes in the company's operations and workforce justified the termination of the existing collective agreement. The Commission needed to determine whether the changes were substantial enough to warrant the termination of the agreement and whether such termination would be in the best interests of the employees and the employer. Additionally, the Commission considered the potential impact of the termination on the employees and whether the company had adequately consulted with its employees regarding the proposed changes.

The Commission found that the changes in the company's operations and workforce were significant and warranted the termination of the existing collective agreement. The Commission determined that the changes had resulted in a substantial shift in the nature of the work being performed by the employees, which was not contemplated under the existing agreement. The Commission also found that the company had adequately consulted with its employees and that the termination of the agreement would be in the best interests of both the employees and the employer. As a result, the Commission granted the application and terminated the BAE Systems Australia Defence Pty Ltd, Albury Wodonga Military Area 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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