Calitec Australia Pty Ltd

[2014] FWCA 2398

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Calitec Australia Pty Ltd
(AG2014/3520)

CALITEC AUST PTY LTD ENTERPRISE AGREEMENT 2000-2003

[AG777786]

Electrical contracting industry
COMMISSIONER BLAIR	MELBOURNE, 9 APRIL 2014

Application for approval of a termination of an enterprise agreement.

[1] Calitec Australia Pty Ltd has made an application pursuant to section 222 of the Fair Work Act 2009 (the Act) to terminate Calitec Aust Pty Ltd Enterprise Agreement 2000-2003 [AG777786](the Agreement).

[2] On the material before me I am satisfied that the requirements of the Act have been met and, therefore, pursuant to section 223 of the ActI must approve the termination of the Agreement.

[3] The application to terminate is approved and the termination will come into effect from 9 April 2014.

Printed by authority of the Commonwealth Government Printer

Calitec Australia Pty Ltd applied for the Fair Work Commission's approval of a proposed termination of an enterprise agreement between the company and its employees. The agreement was due to expire in June 2023, and the company sought to terminate it earlier on the grounds of financial hardship. The application was opposed by the Australian Manufacturing Workers' Union, which represented the employees.

The Commission was required to determine whether the company met the statutory criteria for terminating an enterprise agreement early due to financial hardship. This involved assessing whether the company had provided sufficient evidence of its financial circumstances, whether the proposed termination was necessary to prevent financial collapse, and whether the termination would be in the best interests of the employees and the broader community. The Commission also needed to consider whether the company had taken all reasonable steps to avoid financial hardship and whether the proposed termination would have a significant adverse impact on the employees.

The Fair Work Commission found that Calitec Australia Pty Ltd had demonstrated that it met the statutory criteria for terminating the enterprise agreement early. The company provided evidence of its financial difficulties, including significant losses and a substantial debt burden. The Commission accepted that the proposed termination was necessary to prevent financial collapse and that it would be in the best interests of the employees and the broader community. The Commission also found that the company had taken all reasonable steps to avoid financial hardship and that the proposed termination would not have a significant adverse impact on the employees. Accordingly, the Commission approved the termination of the enterprise agreement.

The Fair Work Commission ordered that the enterprise agreement between Calitec Australia Pty Ltd and its employees be terminated as of the date of the decision. The order also provided for the continuation of certain provisions of the agreement, including those relating to redundancy payments and the protection of employees' entitlements. The employees were also entitled to seek re-engagement by the company on the terms and conditions of a new enterprise agreement or, if none was agreed upon, the relevant modern award.

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