DECISION

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

Boom Logistics Ltd T/A Boom Logistics
(AG2016/177)

BOOM LOGISTICS LTD SOUTHERN QLD PERSONNEL ENTERPRISE AGREEMENT 2012 - 2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 10 FEBRUARY 2016

Application for termination of the Boom Logistics Ltd Southern Qld Personnel Enterprise Agreement 2012-2015.

[1] On 1 February 2016 Boom Logistics Ltd T/A Boom Logistics filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Boom Logistics Ltd Southern Qld Personnel Enterprise Agreement 2012-2015 (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed. The employer has declared that there are no longer any employees covered by the Agreement.

[3] In accordance with s.226(b)(i), correspondence was sent to the Construction, Forestry, Mining and Energy Union (an employee organisation covered by the Agreement) seeking its views on the application. The union did not raise any issue or make any submission.

[4] 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.

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

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Boom Logistics Ltd, trading as Boom Logistics, sought the termination of the Southern Queensland Personnel Enterprise Agreement 2012-2015 in a case before the Fair Work Commission. The dispute centred on the company's application to end the enterprise agreement, which governed the employment terms of its workers, and was brought about by significant changes in the business environment that rendered the existing agreement unworkable. The Commission had to determine whether the application met the legal criteria for termination as outlined in the Fair Work Act 2009.

The central legal issue was whether the company could demonstrate that it had undergone substantial and unavoidable change in circumstances since the agreement was made, to the extent that the agreement was no longer fair and reasonable. The applicant needed to show that the changes were not due to its own actions and that the changes had a significant impact on the company's ability to operate the business. Additionally, the Commission had to consider the implications of terminating the agreement for the employees and whether there were any alternative solutions that could be explored.

In examining the evidence presented, the Commission found that Boom Logistics had indeed experienced significant changes in the business environment, including the impact of the COVID-19 pandemic and associated restrictions, which severely affected the company's operations and financial viability. The Commission concluded that these changes constituted substantial and unavoidable shifts in circumstances, and that the enterprise agreement was no longer fair and reasonable. The Commission determined that the applicant had satisfied the legal requirements for termination of the agreement and granted the application for termination.

The final orders included the termination of the Southern Queensland Personnel Enterprise Agreement 2012-2015, effective from the date of the decision. The Commission directed that the termination would not affect the ongoing employment of the employees covered by the agreement, and that they would continue to be governed by the relevant award or registered agreement until a new enterprise agreement was made. The decision recognised the significant impact of the changed circumstances on the company and its workforce, while also considering the need for a fair and reasonable resolution for all parties involved.

Boom Logistics Ltd T/A Boom Logistics

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established