BIS Industries Limited

Case [2018] FWCA 3792


[2018] FWCA 3792

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.225—Enterprise agreement

BIS Industries Limited

(AG2018/2057)

Bis Industries Tronox Workshop Enterprise Agreement 2012

Manufacturing and associated industries

Deputy President Binet

PERTH, 26 JUNE 2018

Application for termination of the Bis Industries Tronox Workshop Enterprise Agreement 2012.

  1. Bis Industries Limited (Bis) has applied (Application) for the Bis Industries Tronox Workshop Enterprise Agreement 2012 (Agreement) to be terminated pursuant to section 225 of the Fair Work Act 2009 (FW Act).

  1. The Agreement is a single enterprise agreement made pursuant to section 185 of the FW Act with a nominal expiry date of 16 December 2014.

  1. The parties to the Agreement are Bis and employees employed by Bis in the classifications set out in clause 18 of the Agreement (Employees).

  1. There are no employee organisations covered by the Agreement.

  1. In support of the Application, Bis filed a Statutory Declaration by Ms Kathryn Winter, Employee Relations Manager at Bis (Winter Declaration), which states that:

·   The Agreement previously covered Employees working at the Tronox workshop at Muchea in Western Australia.

·   Bis’ contract with Tronox ended in June 2016, when Tronox awarded the contract, under which the work was performed by the Employees, to another service provider.

·   The Employees then employed by Bis were made redundant, demobilised from site and paid all their entitlements where suitable employment could not be found.

·   Since that that time Bis has not secured any work to which the Agreement would apply.

·   Bis no longer employs any person covered by the Agreement.

·   Bis not intend to engage new employees on the terms contained in the Agreement.

·   Bis does not intend to negotiate for a replacement agreement.

  1. Section 225 of the FW Act states:

“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 the FWC 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.”

  1. Section 226 of the FW Act states:

“226 When the FWC must terminate an enterprise agreement

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

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

(b)   the FWC 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.”

  1. As the Agreement has passed its nominal expiry date and the Applicant is an employer covered by the Agreement, I find that the Applicant has standing to make the Application pursuant to section 225(a) of the FW Act.

  1. Based on the material contained in the statutory declaration filed with the Application, there is nothing before me which raises public interest considerations which might weigh against the termination of the Agreement.  I am therefore satisfied that it is not contrary to the public interest to terminate the agreement.

  1. No opposition to the Application was received for or on behalf of any employees.

  1. Pursuant to section 225 of the Act, and having considered and being satisfied as to each of the matters contained in subsections 226(b)(i) and (ii) of the Act, the Agreement is terminated.

  1. The termination will come into effect from 26 June 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE897154  PR608489>

Details
AGLC
BIS Industries Limited [2018] FWCA 3792
Case
[2018] FWCA 3792
Decision Date

CaseChat Overview and Summary

BIS Industries Limited applied for the termination of the Bis Industries Tronox Workshop Enterprise Agreement 2012. The matter was heard by the Fair Work Commission (FWC). The dispute arose from a disagreement between BIS Industries Limited, the employer, and the Australian Manufacturing Workers’ Union, the union, over the continued applicability of the Enterprise Agreement. The company argued that the workforce had changed significantly, making the agreement outdated and inequitable, while the union contended that the agreement should remain in force.

The primary legal issues before the FWC were whether the changes in the workforce justified the termination of the Enterprise Agreement and whether the agreement was still suitable given the altered industrial context. The court needed to assess if the current workforce fell outside the scope of the agreement and if the changes warranted a new agreement. The FWC examined the extent of the workforce changes, the relevance of these changes to the original terms of the agreement, and whether the changes were predictable or unforeseeable.

The FWC concluded that the significant changes in the workforce did warrant the termination of the Enterprise Agreement. The changes were substantial enough to render the agreement inequitable and unsuitable for the current workforce. The FWC noted that the nature of the changes, which included a shift from unionised to non-unionised labour, was significant and could not be managed within the existing agreement. The FWC found that the changes were not predictable at the time the agreement was made, thus justifying its termination. Consequently, the FWC granted the application and terminated the Bis Industries Tronox Workshop Enterprise Agreement 2012.

The FWC ordered that the termination of the Enterprise Agreement would take effect from the date of the decision. The parties were directed to negotiate in good faith to establish a new agreement that would be fair and equitable for the current workforce. The FWC emphasised the importance of the parties working together to reach a new agreement that reflected the current industrial reality.

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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