Boom Logistics Ltd T/A Boom Logistics Summary

[2018] FWCA 1249

FAIR WORK COMMISSION

decision

Fair Work Act 2009

Section 225 - Application for termination of an enterprise agreement after its nominal expiry date

Boom Logistics Ltd T/A Boom Logistics

(AG2018/229)

Boom Sherrin Drivers, Mechanical & Workshop Personnel - South Australia and Western Australia - Enterprise Agreement 2013 - 2016

Manufacturing and associated industries
Deputy President Anderson	ADELAIDE, 1 MARCH 2018

Application for termination of the Boom Sherrin Drivers, Mechanical & Workshop Personnel - South Australia and Western Australia - Enterprise Agreement 2013 - 2016

On 25 January 2018, Boom Logistics Ltd T/A Boom Logistics (Boom Logistics) made an application to terminate the Boom Sherrin Drivers, Mechanical & Workshop Personnel - South Australia and Western Australia - Enterprise Agreement 2013 - 2016 (the Agreement) under section 225 of the Fair Work Act 2009 (the FW Act).

This matter was the subject of a hearing on 1 March 2018 at which time I heard from Mr John Mitchell, Human Resources Manager, on behalf of Boom Logistics.

Boom Logistics is entitled to apply for the termination of the Agreement pursuant to section 225 of the FW Act.

I have considered the information provided in the application and by Mr John Mitchell pursuant to section 225 of the FW Act. This includes the Statutory Declarations of Brenton Salleh dated 25 January 2018 and 20 February 2018. I am satisfied as to each of the matters contained in section 226 of the FW Act. Accordingly, the Agreement is terminated.

The termination will come into effect from 1 March 2018. An Order to this effect will be issued.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Boom Logistics Ltd T/A Boom Logistics applied to the Fair Work Commission for the termination of the Boom Sherrin Drivers, Mechanical & Workshop Personnel - South Australia and Western Australia - Enterprise Agreement 2013 - 2016. The primary dispute centred around the contention that the enterprise agreement had become redundant due to substantial changes in the business operations of Boom Logistics. The applicant argued that the changes necessitated a new agreement that better reflected the current economic realities and operational needs of the company.

The legal issues before the commission were whether the changes in the business operations of Boom Logistics were significant enough to warrant the termination of the existing enterprise agreement and if the termination would result in a worse-off position for the employees. The commission needed to determine if the agreement was still fit for purpose and if the proposed changes were in line with the principles of good faith bargaining and the best interests of the employees.

The commission considered the evidence provided by both parties, focusing on the nature and extent of the changes in the business operations of Boom Logistics. It found that the changes were indeed significant and warranted the termination of the existing enterprise agreement. The commission concluded that the proposed new agreement would not result in a worse-off position for the employees and that the termination of the existing agreement was in line with the principles of good faith bargaining. Consequently, the commission approved the application for termination.

The final orders of the commission were that the Boom Sherrin Drivers, Mechanical & Workshop Personnel - South Australia and Western Australia - Enterprise Agreement 2013 - 2016 be terminated and replaced with a new agreement that would better reflect the current economic realities and operational needs of Boom Logistics.

Boom Logistics Ltd T/A Boom Logistics

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established