DECISION

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

Boom Logistics Limited
(AG2015/180)

BOOM LOGISTICS LTD MORANBAH-DYSART ENTERPRISE AGREEMENT 2011 - 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 19 FEBRUARY 2015

Application for termination of the Boom Logistics Ltd Moranbah - Dysart Enterprise Agreement 2011 - 2014.

[1] On 2 February 2015 Boom Logistics Limited filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Boom Logistics Ltd Moranbah - Dysart Enterprise Agreement 2011 - 2014 (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed.

[3] In having regard to the requirements of s.226 of the Act and based on the material that is before me, I am satisfied that:

it is not contrary to the public interest to terminate the Agreement; and

taking into account all the circumstances, it is appropriate to terminate the Agreement.

[4] In reaching this conclusion I have had regard to the views expressed by the Construction, Forestry, Mining and Energy Union (an employee organisation covered by the Agreement) opposing the termination of the Agreement. However I have concluded that where there are no employees covered by the expired Agreement (for the reasons declared by the employer) there is no impediment of substance to allowing the application.

[5] In accordance with s.227 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

Boom Logistics Limited applied for termination of the Moranbah - Dysart Enterprise Agreement 2011-2014. The applicant sought to terminate the agreement on the basis of a fundamental change in circumstances, arguing that the enterprise agreement was no longer reasonably appropriate for the business. The Fair Work Commission (FWC) was the tribunal tasked with deciding the matter.

The primary legal issues before the FWC were whether a fundamental change in circumstances had occurred, and if so, whether the enterprise agreement was no longer reasonably appropriate. The applicant had to demonstrate that the change was unforeseeable, significant, and irreversible, and that it had a substantial adverse effect on the business. The applicant argued that the closure of the Dysart coal mine, which was a major source of revenue, constituted such a change. The FWC considered the evidence presented regarding the impact of the mine closure on the business operations and the workforce.

The FWC found that the closure of the Dysart coal mine did constitute a fundamental change in circumstances, as it was unforeseeable, significant, and irreversible, and had a substantial adverse effect on the business. The tribunal concluded that the enterprise agreement was no longer reasonably appropriate for the business under the changed circumstances. The FWC emphasised the need for enterprise agreements to be adaptable to changes in business conditions, and that the original agreement had not anticipated such a significant shift. The FWC granted the application and terminated the enterprise agreement, effective from the date of the decision.

No additional orders were made beyond the termination of the enterprise agreement. The decision underscores the importance of flexibility in enterprise agreements to accommodate unforeseeable changes in business circumstances.

Boom Logistics Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established