DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Broadspectrum (Australia) Pty Ltd
(AG2018/5267)

TRANSFIELD SERVICES LIMITED (OPERATIONS & MAINTENANCE SERVICES - LCT/M2) ENTERPRISE AGREEMENT 2013-2016

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	SYDNEY, 26 SEPTEMBER 2018

Application for termination of the Transfield Services Limited (Operations & Maintenance Services - LCT/M2) Enterprise Agreement 2013-2016.

[1] On 19 September 2018, Broadspectrum (Australia) Pty Ltd made an application to terminate the Transfield Services Limited (Operations & Maintenance Services - LCT/M2) Enterprise Agreement 2013-2016 (the Agreement) pursuant to s.225 of the Fair Work Act 2009 (the Act).

[2] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the National Union of Workers, being employee organisations covered by the Agreement, were advised of the application and did not raise any objection.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect on 26 September 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Broadspectrum (Australia) Pty Ltd applied to the Fair Work Commission for the termination of the Transfield Services Limited (Operations & Maintenance Services - LCT/M2) Enterprise Agreement 2013-2016. Broadspectrum contended that significant changes in the business environment, including the merger with Transfield Services, necessitated the renegotiation of the agreement. The company argued that the existing agreement was no longer suitable given the changes in the operational landscape and workforce composition.

The legal issues before the Commission involved determining whether the substantial changes in the business environment justified the termination of the enterprise agreement. Broadspectrum needed to demonstrate that the changes were so significant that the agreement could not reasonably be expected to remain in force. Additionally, the Commission had to consider whether Broadspectrum had acted in good faith and whether any alternative arrangements could be made to accommodate the changes without terminating the agreement.

The Commission found that the changes in the business environment were indeed substantial and warranted the termination of the existing enterprise agreement. The merger and subsequent integration of operations created a new operational reality that the agreement did not adequately address. The Commission also considered the good faith efforts of Broadspectrum in attempting to reach an alternative arrangement with the relevant unions, but concluded that the changes were too significant to be managed through amendments to the existing agreement. Therefore, the application for termination was successful.

The final orders of the Commission included the termination of the Transfield Services Limited (Operations & Maintenance Services - LCT/M2) Enterprise Agreement 2013-2016, effective from the date of the decision. The Commission also directed the parties to engage in good faith negotiations to establish a new enterprise agreement that would be suitable for the current operational environment.

Broadspectrum (Australia) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established