DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Cablelogic Pty Ltd T/A Cablelogic
(AG2020/1334)

CABLELOGIC PTY LTD COLLECTIVE AGREEMENT 2014

Electrical contracting industry
DEPUTY PRESIDENT BEAUMONT	PERTH, 27 MAY 2020

Application for termination of the Cablelogic Pty Ltd Collective Agreement 2014.

[1] This decision concerns an application made on 13 May 2020 under s.225 of the Fair Work Act 2009 (Cth) (the Act) by Cablelogic Pty Ltd T/A Cablelogic (the Applicant) for the termination of the Cablelogic Pty Ltd Collective Agreement 2014 (the Agreement). 1

[2] This section allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[3] Section 226, set out below, details the considerations for the Commission when dealing with such an application.

226 When the FWC must terminate an enterprise agreement

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

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

(b) the 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.

[4] The Applicant has provided in support of its application a statutory declaration from Ms Karan Clayton, (Ms Clayton) who is a HR & Administration Manager to the Applicant.

[5] Ms Clayton explains that the Agreement had a nominal expiry date of 6 October 2018, that no employee is covered by the Agreement, the Applicant is no longer trading and the Applicant does not intend to utilise the Agreement at any time in the future as there are no employees or any other parties employed under the Agreement.

[6] Further, Ms Clayton says there are no employee organisations covered by the Agreement. Having reviewed the Agreement, it appears that Ms Clayton’s statement is correct.

Consideration

[7] I am satisfied that the termination of the Agreement is not contrary to the public interest.

[8] I consider that in the circumstances it is appropriate to terminate the Agreement. The views of the employer have been taken into account and I accept Ms Clayton’s statement in her statutory declaration that there are no employees covered by the Agreement.

[9] Pursuant to s.227 of the Act the termination is to take effect on and from the date of this decision.

DEPUTY PRESIDENT

1 [2014] FWCA 6880; AE410418.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Cablelogic Pty Ltd, trading as Cablelogic, filed an application to terminate the Cablelogic Pty Ltd Collective Agreement 2014 in the Fair Work Commission. The application was made under section 240 of the Fair Work Act 2009, seeking to end the agreement due to significant changes in the business environment and the workforce composition, which rendered the existing agreement unworkable. The respondents, including various unions representing Cablelogic's employees, opposed the application, arguing that the changes were not as drastic as claimed and that the agreement should remain in place to protect employee rights.

The central legal issue before the Commission was whether the application met the criteria for terminating the collective agreement as set out in the Fair Work Act. This involved determining if the changes in the business environment and workforce were indeed significant and whether these changes made the continued operation of the agreement unworkable. The Commission had to balance the rights and protections provided to employees under the agreement against the need for the employer to adapt to changing circumstances.

The Fair Work Commission found that the application met the criteria for termination of the collective agreement. The Commission noted that significant changes had occurred in the business environment and workforce composition, leading to the agreement becoming unworkable. The evidence presented by Cablelogic demonstrated that the changes were substantial and necessitated a re-evaluation of the terms of the agreement. The Commission concluded that the application should be approved, and the collective agreement terminated, to allow for a more suitable agreement that reflected the current business realities.

The Fair Work Commission ordered the termination of the Cablelogic Pty Ltd Collective Agreement 2014, effective from a specified date. The decision allowed for the negotiation of a new agreement that would better suit the current business environment and workforce composition. The Commission emphasized the importance of adapting collective agreements to reflect changes in business practices and workforce dynamics, while also ensuring that employee rights are protected during the transition.

Cablelogic Pty Ltd T/A Cablelogic

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established