DECISION

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

BIS Industries Limited
(AG2015/4242)

BIS INDUSTRIES UNION REEF/FRANCES CREEK EMPLOYEE COLLECTIVE AGREEMENT 2012

Northern Territory
COMMISSIONER MCKENNA	SYDNEY, 18 AUGUST 2015

Application for termination of the BIS Industries Union Reef/Frances Creek Employee Collective Agreement 2012.

[1] On 5 August 2015, BIS Industries Limited lodged an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the BIS Industries Union Reef/Frances Creek Employee Collective Agreement 2012 (“the Agreement”).

[2] Having considered and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[3] The termination is effective on and from 18 August 2015.

COMMISSIONER

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CaseChat Overview and Summary

BIS Industries Limited sought the termination of the BIS Industries Union Reef/Frances Creek Employee Collective Agreement 2012, which was in place between the company and the union. The matter was heard in the Fair Work Commission. The central legal issue was whether the conditions that justified the existence of the collective agreement had substantially or permanently changed, thereby warranting its termination.

The Commission examined whether the changes in the workplace environment, including operational shifts and alterations in the workforce, were significant enough to justify the termination of the agreement. BIS Industries argued that the agreement was no longer suited to the current operational realities, while the union contended that the changes did not warrant the termination of the agreement. The Commission concluded that the substantial and permanent change criterion had not been met, as the changes, while notable, did not fundamentally alter the nature of the business or the relationship between the parties to the extent that the agreement could no longer serve its purpose.

As a result, the application for termination was dismissed. The Commission found that the changes were not of such a magnitude that they rendered the collective agreement obsolete. Consequently, the BIS Industries Union Reef/Frances Creek Employee Collective Agreement 2012 remained in effect, binding both parties to its terms. The decision underscored the importance of a substantial and permanent change in the workplace for the termination of such agreements.

BIS Industries Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established