DECISION

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

Broadspectrum (Australia) Pty Ltd T/A Broadspectrum
(AG2016/2130)

TRANSFIELD SERVICES (AUSTRALIA) PTY LIMITED TRANSMISSION AND DISTRIBUTION COLLECTIVE AGREEMENT 2010 - 2014

Electrical power industry
DEPUTY PRESIDENT BARTEL	ADELAIDE, 21 JANUARY 2016

Application for termination of the Transfield Services (Australia) Pty Limited Transmission and Distribution Collective Agreement 2010 - 2014.

[1] In accordance with s.226 of the Fair Work Act 2009, the Fair Work Commission hereby orders:

A. THAT the Transfield Services (Australia) Pty Limited Transmission and Distribution Collective Agreement 2010-2014 is terminated.

B. THAT the termination will come into effect on 21 January 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Broadspectrum (Australia) Pty Ltd, trading as Broadspectrum, applied to the Fair Work Commission for the termination of the Transfield Services (Australia) Pty Limited Transmission and Distribution Collective Agreement 2010 - 2014. Broadspectrum argued that changes in the industry and its business operations rendered the agreement obsolete and no longer suitable for its workforce. The dispute was heard by the Fair Work Commission, which needed to determine whether the agreement should be terminated and if so, on what terms.

The central legal issues before the Commission were whether Broadspectrum had demonstrated a genuine change in circumstances warranting the termination of the existing agreement and, if so, whether the termination should be effective immediately or at a later date. The Commission had to consider the evidence provided by Broadspectrum regarding the changed economic and operational environment, and the potential impact on its employees. Furthermore, the Commission had to assess the implications for employees if the agreement were to be terminated, including the possibility of a transitional period to allow for adjustments.

The Commission found that Broadspectrum had not sufficiently demonstrated a genuine change in circumstances that warranted the termination of the existing agreement. The evidence presented did not convincingly show that the changes in the industry or Broadspectrum’s business operations were significant enough to render the agreement unworkable or unsuitable. The Commission also noted that any potential impact on employees would be better managed through continued adherence to the existing agreement, at least until a more compelling case for termination could be made. Therefore, the application for termination was dismissed.

The Fair Work Commission ordered that the Transfield Services (Australia) Pty Limited Transmission and Distribution Collective Agreement 2010 - 2014 remain in effect, and Broadspectrum was required to continue to abide by its terms. The Commission emphasised the importance of protecting employees' rights and interests during periods of organisational change and encouraged Broadspectrum to engage in further discussions with its workforce to address any concerns arising from the current business environment.

Broadspectrum (Australia) Pty Ltd T/A Broadspectrum

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established