Bridgestone Mining Solutions Australia Pty Ltd

[2024] FWCA 3701

[2024] FWCA 3701

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Bridgestone Mining Solutions Australia Pty Ltd

(AG2024/3978)

BRIDGESTONE MINING SOLUTIONS AUSTRALIA PTY LTD - HUNTER VALLEY - SERVICE TYRE FITTERS - ENTERPRISE AGREEMENT 2019

Vehicle industry
COMMISSIONER SLOAN	SYDNEY, 24 OCTOBER 2024

Application for termination of the Bridgestone Mining Solutions Australia Pty Ltd - Hunter Valley - Service Tyre Fitters - Enterprise Agreement 2019

1. Bridgestone Mining Solutions Australia Pty Ltd (“Bridgestone”) has applied to terminate the Bridgestone Mining Solutions Australia Pty Ltd – Hunter Valley – Service Tyre Fitters – Enterprise Agreement 2023 (“Bridgestone Agreement”) pursuant to s 225 of the Fair Work Act 2009 (“Act”).

2. The application is supported by a declaration made by Mary Galanopoulos, the Executive Manager – People Culture and Governance of Bridgestone. The salient terms of the declaration are as follows:

   a.The nominal expiry date of the Bridgestone Agreement was 31 August 2024.

   b.Bridgestone has acquired Otraco International Pty Limited (“Otraco”).

   c.Otraco has an enterprise agreement with its employees called the Otraco International Pty Ltd Enterprise Agreement – Coal 2023 (“Otraco Agreement”). The Otraco Agreement was approved by the Commission.

   d.The terms of the Otraco Agreement are more beneficial to employees than those of the Bridgestone Agreement.

   e.The termination of the Bridgestone Agreement would permit employees to transfer to the Otraco Agreement, which is Bridgestone’s intention.

   f.There are nine affected employees.

   g.Termination of the Bridgestone Agreement would have number of benefits, such as conferring improved conditions on employees covered by the Bridgestone Agreement; removing the risk of staff turnover due to perceptions of unfairness in the conditions provided to employees across the business; and providing the merged business with greater rostering flexibility and service reliability.

   h.Bridgestone has undertaken consultation with the affected employees and the Australian Workers’ Union (“AWU”).

1. The AWU has informed the Commission that it does not wish to be heard on the matter.

2. Section 225 relevantly provides:

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

   If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

   (a) one or more of the employers covered by the agreement;

   …

1. The Bridgestone Agreement has passed its nominal expiry date. Bridgestone has standing to apply for termination of the Bridgestone Agreement pursuant to s 225(a).

2. Section 226 of the Act relevantly provides:

   226     Terminating an enterprise agreement after its nominal expiry date

   (1) 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 the continued operation of the agreement would be unfair for the employees covered by the agreement; or

   …

   (1A) However, the FWC must terminate the enterprise agreement under subsection (1) only if the FWC is satisfied that it is appropriate in all the circumstances to do so.

   …

   (5) In deciding whether to terminate the agreement, the FWC may also have regard to any other relevant matter.

3. I am satisfied that the continued operation of the agreement would be unfair for the employees covered by the Bridgestone Agreement, to the extent that it would preclude them from coverage of the more beneficial Otraco Agreement. I am otherwise satisfied that it is appropriate in all the circumstances to terminate the Bridgestone Agreement. The termination will come into effect on 24 October 2024.

COMMISSIONER

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