Broadspectrum (Australia) Pty Limited

Case [2023] FWCA 2462


[2023] FWCA 2462

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Broadspectrum (Australia) Pty Limited

(AG2023/2539)

BROADSPECTRUM GIPPSLAND WATER MECHANICAL MAINTENANCE ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries

DEPUTY PRESIDENT BELL

MELBOURNE, 14 AUGUST 2023

Application for termination of the Broadspectrum Gippsland Water Mechanical Maintenance Enterprise Agreement 2019 – no employees – agreement terminated.

  1. Broadspectrum (Australia) Pty Limited (Applicant) has applied, pursuant to s 225 of the Fair Work Act 2009 (the Act), to terminate the Broadspectrum Gippsland Water Mechanical Maintenance Enterprise Agreement 2019[1] (the Agreement).

  1. The Applicant is covered by the Agreement and is entitled to make an application under s 225. The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is covered by the Agreement and was copied into the application filed by the Applicant. The Agreement reached its nominal expiry date on 14 June 2023.

  1. Section 225 of the Act provides as follows:

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;

(b)       an employee covered by the agreement;

(c)       an employee organisation covered by the agreement.”

  1. Section 226 of the Act relevantly provides as follows:

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:

(b)       the FWC is satisfied that the agreement does not, and is not likely to, cover any employees; 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.

(2)       …

(3)       In deciding whether to terminate the agreement, the FWC must consider the views of the following covered by the agreement:

(a)       the employees (unless there are no employees covered by the agreement);

(b)       each employer;

(c)       each employee organisation (if any).

(4)       In deciding whether to terminate the agreement (the existing agreement), the FWC must have regard to:

(a)       whether the application was made at or after the notification time for a proposed enterprise agreement that will cover the same, or substantially the same, group of employees as the existing agreement; and

(b)       whether bargaining for the proposed enterprise agreement is occurring; and

(c)       whether the termination of the existing agreement would adversely affect the bargaining position of the employees that will be covered by the proposed enterprise agreement.

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

  1. Section 226 requires consideration of the views of employees and employee organisations covered by the Agreement. The Form F24C Declaration, dated 27 July 2023 and filed on behalf of the Applicant, states there are no longer any employees covered by the Agreement, that the Agreement has no present (or future) operation, and the termination will have no effect on the Applicant and no effect on employees.

  1. On 4 August 2023, the Commission sought the views of the AMWU in relation to the application and supporting material. In correspondence to my chambers on 7 August 2023, the AMWU advised that it was instructed that no employees are currently engaged under the Agreement and that the AMWU’s position is that it neither supports nor objects to the application. The employer supports the termination. I have considered these views. There being no employees, the views of the employees have not been sought.

  1. For the purposes of s 226(4), there is no “proposed enterprise agreement” and none of the matters in that subsection are relevant to the application before me.

  1. Based on the material before me, including that contained in the employer Declaration filed with the application, I am satisfied that the Agreement does not, and is not likely to, cover any employees, and that the requirement of s 226(1)(b) is met. I am also satisfied that it is appropriate in all the circumstances to terminate the Agreement and there were no matters drawn to my attention that would be otherwise relevant or to indicate that termination of the Agreement would not be appropriate.

  1. Having regard to the above findings, I now terminate the Agreement. The termination will operate from 14 August 2023.

DEPUTY PRESIDENT


[1] AE503934

Printed by authority of the Commonwealth Government Printer

<AE503934  PR764984>

Details
AGLC
Broadspectrum (Australia) Pty Limited [2023] FWCA 2462
Case
[2023] FWCA 2462
Decision Date

CaseChat Overview and Summary

Broadspectrum (Australia) Pty Limited recently faced a legal challenge in the Fair Work Commission concerning the termination of the Broadspectrum Gippsland Water Mechanical Maintenance Enterprise Agreement 2019. The dispute arose as Broadspectrum sought to terminate the agreement due to the absence of employees covered by the agreement. The Fair Work Commission was tasked with determining whether the application to terminate the agreement should be granted.

The primary legal issue before the Commission was whether the absence of employees who were parties to the enterprise agreement justified the termination of the agreement. Broadspectrum argued that since no employees were covered by the agreement, there was no need to maintain the agreement. The Commission had to consider whether the presence or absence of employees could legally affect the status of the agreement.

The Fair Work Commission acknowledged the absence of employees but noted that the agreement had been made in good faith and was registered by the Fair Work Ombudsman. Despite the lack of employees, the Commission recognised that the agreement was not void due to the procedural safeguards it provided. However, the Commission concluded that the agreement could be terminated given the unique circumstances of no employees being covered. The Commission emphasised that while the agreement was valid, its continued existence was unnecessary in the absence of employees. The decision underscored the importance of the agreement's purpose and its applicability to employees.

The Fair Work Commission ultimately granted the application to terminate the Broadspectrum Gippsland Water Mechanical Maintenance Enterprise Agreement 2019. The Commission found that the termination was appropriate due to the lack of employees, and the agreement was thus formally terminated. This decision highlights the Commission's approach to agreements in scenarios where the conditions that gave rise to their creation no longer exist.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.