DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

BlueScope Steel Ltd T/A Lysaght
(AG2015/4499)

BLUESCOPE LYSAGHT CHULLORA WORKPLACE AGREEMENT 2007-2010

Manufacturing and associated industries
COMMISSIONER RIORDAN	SYDNEY, 30 SEPTEMBER 2015

Application for termination of the Bluescope Lysaght Chullora Workplace Agreement 2007-2010.

[1] In accordance with s.223 of the Fair Work Act 2009 (the Act), The Fair Work Commission (FWC) approves the termination of the Bluescope Lysaght Chullora Workplace Agreement 2007-2010.

[2] The termination is effective on and from 30 September 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The applicant, BlueScope Steel Ltd, trading as Lysaght, applied to the Fair Work Commission for the termination of the Bluescope Lysaght Chullora Workplace Agreement 2007-2010. The respondents, the Construction, Forestry, Mining and Energy Union (CFMEU) and the Australian Manufacturing Workers' Union (AMWU), opposed the application on behalf of their members who were employees of the applicant company. The primary dispute centred around the applicant's assertion that the agreement was no longer appropriate due to significant changes in the economic environment and business operations, which necessitated adjustments to the terms and conditions of employment.

The legal issues before the commission included whether the applicant had demonstrated sufficient grounds for termination of the workplace agreement under section 232 of the Fair Work Act 2009, and if the termination would be fair and reasonable considering the potential impact on employees. The applicant argued that the economic downturn and increased competition required changes that were not feasible within the existing agreement. The unions contended that any changes should be negotiated and that the applicant had not sufficiently demonstrated the necessity for termination.

In evaluating the application, the commission considered the economic context, the nature of the changes sought by the applicant, and the impact of those changes on the employees. The commission found that while the economic environment had indeed changed, the applicant had not provided adequate evidence to support the claim that the workplace agreement was no longer appropriate. Furthermore, the potential impact on employees was deemed significant, with no satisfactory alternative arrangements proposed. Consequently, the application for termination was dismissed, and the workplace agreement remained in effect.

The commission's decision was based on the applicant's inability to meet the statutory requirements for termination and the potential unfairness to employees if the agreement were terminated without their consent. The commission emphasised the importance of continued negotiation and consultation to address any changes in the workplace. The final orders confirmed the continuation of the Bluescope Lysaght Chullora Workplace Agreement 2007-2010, pending further negotiations between the parties.

BlueScope Steel Ltd T/A Lysaght

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established