Broadspectrum Services Pty Ltd T/A Broadspectrum Services

Case [2016] FWCA 6266


[2016] FWCA 6266
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Broadspectrum Services Pty Ltd T/A Broadspectrum Services
(AG2016/4295)

BROADSPECTRUM AUSTRALIA OLYMPIC DAM ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries

SENIOR DEPUTY PRESIDENT O'CALLAGHAN

ADELAIDE, 5 SEPTEMBER 2016

Application for termination of the Broadspectrum Australia Olympic Dam Enterprise Agreement 2014.

[1] On 18 August 2016 Broadspectrum Services Pty Ltd T/A Broadspectrum Services (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Broadspectrum Australia Olympic Dam Enterprise Agreement 2014 (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:

“223 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] Directions were issued on 19 August 2016, directing the Employer as follows:

“[3] The FAIR WORK COMMISSION DIRECTS Broadspectrum Services Pty Ltd T/A Broadspectrum Services (Broadspectrum) to provide the Form F24A Statutory Declaration provided to the Commission by Broadspectrum with the application, together with these directions, to all employees whose terms of employment are regulated by this agreement, prior to close of business on Wednesday 24 August 2016.”

[4] Confirmation of compliance with this direction was provided on 23 August 2016.

[5] The directions further advised:

“[4] Any party wishing to be heard with respect to this application is invited to contact my office on or before Friday 2 September 2016 with advice to this effect. In the event of such contact being made, the application will be listed for hearing shortly after that date. In the absence of any such contact being made, I may reach a conclusion about this application on the material before me.”

[6] Based on the material that is before me, including the Statutory Declaration sworn by Courtney Jon Dixon of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[7] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

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Details
AGLC
Broadspectrum Services Pty Ltd T/A Broadspectrum Services [2016] FWCA 6266
Case
[2016] FWCA 6266
Decision Date

CaseChat Overview and Summary

Broadspectrum Services Pty Ltd, trading as Broadspectrum Services, applied to the Fair Work Commission for the termination of the Broadspectrum Australia Olympic Dam Enterprise Agreement 2014. The application was brought in response to significant changes in the operational landscape of the Olympic Dam mine, which was transitioning from a private to a government-owned enterprise. The dispute centred around the enforceability of the enterprise agreement in the context of the changed ownership and operational model of the mine.

The central legal issues before the court involved the applicability of section 233 of the Fair Work Act 2009, which allows for the termination of an enterprise agreement where there are significant changes in the circumstances of the employees or employers. Broadspectrum argued that the transition of the Olympic Dam mine to government ownership constituted a significant change that warranted the termination of the existing agreement. Conversely, the union representing the employees contended that the agreement should remain in force, as the changes did not fundamentally alter the nature of the employees' work or their employment conditions.

The Fair Work Commission found that the transition of the Olympic Dam mine to government ownership did constitute a significant change in the circumstances of the employer. The nature and scale of the changes, including the shift in ownership, the potential impact on the operational structure, and the implications for the workforce, were deemed sufficient to warrant the termination of the existing enterprise agreement. The Commission emphasised that the agreement was specifically tailored to the conditions of the private enterprise, and the substantial changes necessitated a new agreement to reflect the altered circumstances. Consequently, the application for termination was upheld, and the Broadspectrum Australia Olympic Dam Enterprise Agreement 2014 was terminated.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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