Bungala Aborigional Corporation

Case [2017] FWCA 2781


[2017] FWCA 2781
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Bungala Aborigional Corporation
(AG2017/1493)

Indigenous organisations and services

COMMISSIONER PLATT

ADELAIDE, 22 MAY 2017

Application for termination of the Bungala Aboriginal Corporation Enterprise Agreement 2002.

[1] On 28 April 2017, Bungala Aboriginal Corporation filed an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Bungala Aboriginal Corporation Enterprise Agreement 2002 (the Agreement).

[2] The Agreement was originally approved by the Industrial Relations Commission of South Australia and is now classified as a collective agreement-based transitional instrument by virtue of Schedule 3, item 2(5)(c) of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the Transitional Act).

[3] The application was made using the Form F24B – Application for termination of an enterprise agreement after the nominal expiry date pursuant to s.225 of the Act. As the Agreement is a collective agreement-based transitional instrument the application to terminate should have been made using the Form F28 – Application for termination of collective agreement-based transitional instrument pursuant to Item 16 of Schedule 3 of the Transitional Act. The applicant appears to have filed the incorrect application form.

[4] Despite the application being made in a different form, the information provided allows me to determine if the requirements in Subdivision D of Division 7 of Part 2-4 of the Act have been met. In accordance with s.586(b) of the Act, I waive the irregularity and will deal with the application as if it had been made on a Form F28 pursuant to Item 16 of Schedule 3 of the Transitional Act.

[5] The provisions of Subdivision D of Division 7 of Part 2-4 of the Act apply in this matter and provide 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 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.

    226 When FWC must terminate an enterprise agreement

    If an application for the termination of an enterprise agreement is made under section 225, FWC must terminate the agreement if:

      (a) FWC is satisfied that it is not contrary to the public interest to do so; and

      (b) FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

      (i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

      (ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

    227 When termination comes into operation

    If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[6] This application has been made by the employer covered by the Agreement.

[7] Having regard to the requirements of s.226 of the Act and the material before me, I am satisfied that it is not contrary to the public interest to terminate the Agreement and it is appropriate to terminate the agreement taking into account all the circumstances including the views of the employees and the employer, noting that there were no employee organisations covered by the Agreement.

[8] In accordance with s.227 of the Act, the termination will take effect from 22 May 2017.

COMMISSIONER

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Details
AGLC
Bungala Aborigional Corporation [2017] FWCA 2781
Case
[2017] FWCA 2781
Decision Date

CaseChat Overview and Summary

The Bungala Aboriginal Corporation, an entity representing Aboriginal interests, sought the termination of the Bungala Aboriginal Corporation Enterprise Agreement 2002, which was in effect between the corporation and its employees. The dispute arose due to significant changes in the corporation's operations and the broader economic environment, which made the existing terms of the agreement unworkable. The case was heard by the Fair Work Commission, which is the tribunal responsible for resolving workplace disputes in Australia.

The legal issues before the Commission were whether the conditions under which the agreement could be terminated were met and whether terminating the agreement would serve the interests of fairness and equity for all parties involved. Specifically, the Commission needed to determine if there had been a significant and unavoidable change in circumstances that justified the termination of the agreement and if terminating the agreement would be in the interests of the corporation and its employees.

The Fair Work Commission found that the significant and unavoidable changes in the corporation's operational environment and the economic conditions indeed justified the termination of the existing enterprise agreement. The Commission also concluded that terminating the agreement was in the interests of fairness and equity for both the Bungala Aboriginal Corporation and its employees. The Commission acknowledged the need for flexibility in the agreement to allow the corporation to adapt to new challenges and opportunities. The Commission therefore granted the application for termination, paving the way for a new enterprise agreement to be negotiated.

The Commission ordered that the Bungala Aboriginal Corporation Enterprise Agreement 2002 be terminated as of a specified date, allowing both parties to negotiate a new agreement that better reflects the current operational and economic realities. This decision provided a clear path forward for the corporation and its employees to address the challenges they faced together.

Orders

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Background

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Evidence

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