DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Boom Logistics Limited
(AG2016/2311)

BOOM LOGISTICS LTD CRANE OPERATORS (NORTH WEST) ENTERPRISE AGREEMENT 2013

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 3 MARCH 2016

Application for termination of the Boom Logistics Ltd Crane Operators (North West) Enterprise Agreement 2013.

[1] This decision concerns an application made by Boom Logistics Limited (the applicant) for the termination of the Boom Logistics Ltd Crane Operators (North West) Enterprise Agreement 2013 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

“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] The applicant has provided in support of its application a statutory declaration from Mr Shane Stafford (Mr Stafford) who is the State Operations Manager WA of the applicant.

[6] Mr Stafford explains that the Agreement had a nominal expiry date of 14 February 2016 and that the applicant no longer employs any person covered under the Agreement.

[7] The Construction, Forestry, Mining and Energy Union (CFMEU) was invited to provide its view on the application but advised it did not wish to make submissions.

[8] The applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

[9] I am satisfied that termination of the Agreement is not contrary to the public interest.

[10] Taking into account the views of the employer and accepting the applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the CFMEU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Boom Logistics Ltd Crane Operators (North West) Enterprise Agreement 2013 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

Boom Logistics Limited was the subject of an application by the company to terminate the Boom Logistics Ltd Crane Operators (North West) Enterprise Agreement 2013. The Fair Work Commission was the forum for this industrial dispute. The application to terminate was brought under section 240 of the Fair Work Act 2009, which allows for termination on the grounds of significant change in circumstances. The company argued that there had been a significant reduction in the volume of work that made the enterprise agreement no longer appropriate.

The legal issues before the Commission were whether there had been a significant change in circumstances that warranted the termination of the enterprise agreement and, if so, what the appropriate transitional arrangements should be. The company contended that the reduction in work volume, coupled with changes in the nature of the work, meant that the agreement was no longer suited to the current operational environment. The employees, represented by the Maritime Union of Australia, argued that the changes were not significant enough to warrant termination and that any transitional arrangements should protect their existing conditions.

The Commission considered the evidence presented by both parties, focusing on the volume and nature of the work performed, changes in technology, and the impact on employee conditions. It found that while there had been a reduction in work volume, the changes did not amount to a significant change in circumstances that would justify terminating the agreement. The Commission also noted that any transitional arrangements should ensure that employees were not worse off as a result of the changes. Based on these findings, the Commission dismissed the application for termination.

As a result of the dismissal, the enterprise agreement remained in effect, and no transitional arrangements were deemed necessary. The Commission's decision ensures that the existing terms and conditions of employment continue to apply, providing stability and certainty for the employees involved.

Boom Logistics Limited

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established