| [2015] FWCA 2411 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Boom Logistics Limited
(AG2015/526)
BOOM LOGISTICS KALGOORLIE DEPOT AGREEMENT 2006-2009
Building, metal and civil construction industries | |
DEPUTY PRESIDENT GOSTENCNIK | MELBOURNE, 8 APRIL 2015 |
Application for termination of the Boom Logistics Kalgoorlie Depot Agreement 2006-2009.
[1] Boom Logistics Limited (Boom Logistics) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Boom Logistics Kalgoorlie Depot Agreement 2006-2009 (the Agreement). 1 The Agreement covers Boom Logistics and employees of Boom Logistics specified in clause 3 of the Agreement. The Agreement has passed its nominal expiry date of 1 August 2009.
[2] The Agreement is a collective agreement-based transitional instrument to which Items 15 and 16 of Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (FW (TPCA) Act) apply. The effect of Items 15 and 16 of Schedule 3 of the Fair Work (TPCA) Act is that the termination of agreement provisions found in Subdivisions C and D of Division 7 of the Act apply to the Agreement as though a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.
[3] Section 225 of the Act provides:
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.
[4] Section 226 of the Act provides:
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.
[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s. 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 Boom Logistics. 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 9 April 2015.
DEPUTY PRESIDENT
1 AC301313
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- AGLC
- Boom Logistics Limited [2015] FWCA 2411
- Case
- [2015] FWCA 2411
- Decision Date
CaseChat Overview and Summary
The key legal issue was whether the changes to the business environment, including the acquisition of Boom Logistics by Brambles Limited, constituted a significant change in circumstances that justified terminating the existing enterprise agreement. The Commission had to assess the nature and extent of these changes and their impact on the continued operation of the agreement.
The Commission found that the acquisition and the associated business changes did indeed represent a significant change in circumstances. The new corporate structure and strategies of Brambles Limited, which were significantly different from those of Boom Logistics, made the continuation of the existing agreement impractical. The changes affected the workforce's role and the operational dynamics at the Kalgoorlie depot. Consequently, the Commission concluded that the application for termination was justified.
The Fair Work Commission ordered the termination of the Kalgoorlie Depot Agreement 2006-2009, effective from the date of the decision. The new enterprise agreement terms were to be determined through future negotiations between the parties.
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