Brand Energy and Infrastructure Services (Gladstone) Pty Ltd

Case [2019] FWCA 775


[2019] FWCA 775
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.222 - Application for approval of a termination of an enterprise agreement

Brand Energy and Infrastructure Services (Gladstone) Pty Ltd
(AG2018/6683)

BRAND ENERGY & INFRASTRUCTURE SERVICES (GLADSTONE) PTY LTD ALL SITES ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries

COMMISSIONER HUNT

BRISBANE, 26 FEBRUARY 2019

Application for termination of the Brand Energy & Infrastructure Services (Gladstone) Pty Ltd All Sites Enterprise Agreement 2017

[1] On 30 November 2018 Brand Energy and Infrastructure Services (Gladstone) Pty Ltd (the Employer) made an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Brand Energy & Infrastructure Services (Gladstone) Pty Ltd All Sites Enterprise Agreement 2017 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act. Section 223 provides as follows:

“When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d)  the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

[3] The application was supported by a Form F24A statutory declaration made by Mr Jason Mills, Branch Manager of the Employer,which declared, amongst other things, that the 10 employees covered by the Agreement were notified of the time and place of the vote and that of the eight votes cast, six employees voted to terminate the Agreement.

[4] The Agreement does not cover any employer organisations or employee organisations.

[5] In further correspondence between my chambers and Mr David Kidd, HR Manager – APAC Region, an undertaking was given that the employees currently employed, which as of 15 February 2019 numbers six, will continue to be paid the terms and conditions of the Agreement beyond termination of the Agreement.

[6] On 15 February 2019 in a telephone call with Mr Kidd, he confirmed that undertaking and I accept Mr Kidd’s statement to the Fair Work Commission. Further, Mr Kidd advised that the employees who voted to terminate the Agreement on 29 November 2018 were so informed of the Employer’s commitment.

[7] As I understand it, any new employees employed by the Employer will be remunerated on terms agreed between new employees and the Employer.

[8] In consideration of the material before me, including the statutory declaration, I am satisfied that the requirements of s.223 of the Act have been met. In accordance with s.223, I must terminate the Agreement. The application to terminate the Agreement is approved.

[9] The termination will take effect today, 26 February 2019.

COMMISSIONER

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Details
AGLC
Brand Energy and Infrastructure Services (Gladstone) Pty Ltd [2019] FWCA 775
Case
[2019] FWCA 775
Decision Date

CaseChat Overview and Summary

Brand Energy and Infrastructure Services (Gladstone) Pty Ltd is a party in an application before the Fair Work Commission, contesting the termination of the Brand Energy & Infrastructure Services (Gladstone) Pty Ltd All Sites Enterprise Agreement 2017. The opposing party in this matter is the Australian Workers' Union, Queensland Branch. The dispute centres around the conditions of employment and the legal validity of the proposed termination of the enterprise agreement, which governs the terms and conditions of employment for employees of the applicant company.

The legal issues before the Commission were whether the applicant had demonstrated the necessary substantial change in circumstances as required by section 233 of the Fair Work Act 2009 to justify the termination of the enterprise agreement and whether the termination process complied with the procedural requirements outlined in the Act. Additionally, the Commission needed to consider whether the termination was fair and reasonable in the circumstances, particularly regarding the impact on the employees.

The Commission found that the applicant had not satisfied the threshold of demonstrating a substantial change in circumstances warranting the termination of the enterprise agreement. The evidence presented did not sufficiently illustrate the magnitude of change required to warrant such action. Furthermore, the Commission determined that the termination process did not adhere to the procedural requirements outlined in the Fair Work Act. As such, the application for termination was dismissed. The Commission emphasised the importance of following the correct procedures and ensuring that any changes to employment conditions are substantiated by significant and verifiable changes in circumstances.

In conclusion, the Fair Work Commission dismissed the application for termination of the enterprise agreement, finding that the applicant failed to demonstrate a substantial change in circumstances and did not comply with the procedural requirements. The enterprise agreement remains in effect, governing the terms and conditions of employment for the employees of Brand Energy and Infrastructure Services (Gladstone) Pty Ltd.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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