DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Bucher Municipal Pty Ltd
(AG2019/3571)

BUCHER MUNICIPAL - VICTORIAN SERVICE - ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 28 OCTOBER 2019

Application for termination of the Bucher Municipal - Victorian Service - Enterprise Agreement 2017.

[1] Bucher Municipal Pty Ltd has applied to terminate its Bucher Municipal - Victorian Service - Enterprise Agreement 2017 (the Agreement) pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act).

[2] The Agreement was approved by the Commission on 9 March 2017 and has a nominal expiry date of 31 December 2018.

[3] The evidence of the employer is that termination of the Agreement is necessary to remove the administrative burden of differing conditions and ensure consistency of conditions across their national operations, initially a suggestion of employees presently covered by the Agreement. 1

[4] The Commission also received evidence that all affected employees have been: served with this application and accompanying documents; notifications of Commission proceedings and invitations to provide their views (if any) to the Commission. 2 Two employees gave evidence that they support the application and termination of the Agreement.3

[5] In the circumstances, I have decided to determine the matter on the papers without holding a hearing.

[6] Having regard to the materials before the Commission and the matters I am required to take into account pursuant to s.226 of the Act:

(a) I am satisfied that termination of the Agreement is not contrary to the public interest; and
(b) I consider that it is appropriate to terminate the Agreement taking into account all the circumstances, including the views of the employer and those employees who chose to provide their views in relation to the application.

[7] Accordingly, pursuant to ss.226 and 227 of the Act, I terminate the Agreement with immediate effect. An order (PR713635) giving effect to this decision will issue accordingly.

DEPUTY PRESIDENT

1 Statutory Declaration of Connie Corrente dated 18 September 2019.

2 Statutory Declaration of Alastair Filshie dated 15 October 2019.

3 Statutory Declarations of Mick Burton and Rob Pasco dated 15 October 2019.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Bucher Municipal Pty Ltd applied for the termination of the Bucher Municipal – Victorian Service – Enterprise Agreement 2017, a case that was heard in the Fair Work Commission. The dispute arose between Bucher Municipal, the employer, and the Victorian Service Union, representing the employees. The crux of the matter involved whether the enterprise agreement, which had been in effect since 2017, should be terminated due to changes in the business environment that rendered the agreement unworkable.

The legal issues before the Commission centred on whether the significant changes in the business operations of Bucher Municipal warranted a termination of the enterprise agreement. Key considerations included the substantial alteration of the business structure, the impact of these changes on the terms and conditions of employment, and the implications for both the employer and employees. The Commission needed to assess whether these changes were sufficiently drastic to justify terminating the agreement and whether the changes were unforeseeable at the time the agreement was entered into.

The Fair Work Commission found that the changes in Bucher Municipal’s business environment were significant and unforeseeable, leading to an impasse in the employer-employee relationship as contemplated by the Fair Work Act. The Commission concluded that the enterprise agreement could not continue to operate effectively under the new business model. Consequently, the application for termination was upheld. The decision was based on the unworkability of the agreement due to the unforeseen and substantial changes in the employer’s operations. The Commission did not find it appropriate to extend the agreement's terms under Section 236 of the Act. The orders included the termination of the enterprise agreement from a specified date, reflecting the significant shifts in the business environment.

Bucher Municipal 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