Caslec Industries Pty Ltd as Trustee for Caslec Industries Trading Trust T/A Caslec Electrical & Data

[2022] FWCA 2975

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009 (Cth)

s.225—Enterprise agreement

Caslec Industries Pty Ltd as Trustee for Caslec Industries Trading Trust T/A Caslec Electrical & Data

(AG2022/3250)

Caslec Industries Pty Limited Employee Collective Agreement 2009

Building, metal and civil construction industries
DEPUTY PRESIDENT CROSS	SYDNEY, 30 AUGUST 2022

Application for termination of the Caslec Industries Pty Limited Employee Collective Agreement 2009

An application has been made to terminate the Caslec Industries Pty Limited Employee Collective Agreement 2009 (the Agreement). The application was made pursuant to Section 225 of the Fair Work Act 2009 (Cth) (the FW Act). The Application has been made by Caslec Industries Pty Ltd (the Applicant).

Section 225 of the FW Act applies to applications to terminate an enterprise agreement that has passed their nominal expiry date. I am satisfied that the Agreement is an enterprise agreement, and that its nominal expiry date of 2014 has passed.

The Applicant has made a statutory declaration in support of their application, and it is noted that there are current employees that are covered by the Agreement.

On 10 August 2022, my Chambers made the following Directions:

1.Caslec Industries Pty Ltd (the Applicant) is to notify the employees covered by the Caslec Industries Pty Limited Employee Collective Agreement 2009 (the Agreement) via email, of Direction 2 below, by 5:00pm 15 August 2022.

2.Any employee covered by the Agreement, who wishes to make any submission in relation to the Applicant’s application to terminate the Agreement pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Application) is to email [Chambers email address] with their submissions, by 4:00pm 22 August 2022.

3.Contemporaneously with sending the above email to employees, the Applicant must attach, or otherwise evidence communication of, the documents relevant to the Application, including but not limited to the Application documents, and the Agreement.

On 15 August 2022, the Applicant complied with the above Directions 1 and 3 and has provided evidence of that communication to Chambers. No responses were received from any employee in response to Direction 2.

On the basis of the information provided to me in the Application, and as set out above, I am satisfied that each of the requirements of s.226 of the FW Act as are relevant to this Application for termination have been met.

The termination will come into effect on 12 September 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves Caslec Industries Pty Ltd as Trustee for Caslec Industries Trading Trust T/A Caslec Electrical & Data, which applied to the Fair Work Commission to terminate the Employee Collective Agreement 2009. The dispute centred around the employer's contention that the agreement was no longer relevant due to significant changes in the company's operations and workforce. The Fair Work Commission was tasked with determining whether the agreement should be terminated and, if so, under what conditions.

The legal issues before the commission included whether the employer had provided sufficient evidence of substantial change within the business to justify the termination of the agreement. Additionally, the commission had to consider whether the termination would be unfair to the employees and whether any alternative measures, such as amendment of the agreement, could be considered. The employer argued that the existing agreement did not reflect the current realities of their operations and workforce, while the employees' representative contended that the agreement should remain in place as it provided necessary protections and benefits.

The commission found that the employer had demonstrated substantial changes in the business that warranted the termination of the existing agreement. However, the commission also determined that the termination should be implemented in a manner that ensured fairness to the employees. The commission concluded that the agreement should be terminated, effective from a specified date, and that the employer must provide appropriate transitional arrangements for the employees. The decision balanced the employer's need to adapt to changing business conditions with the employees' rights to fair treatment during the transition.

The final orders included the termination of the Employee Collective Agreement 2009, effective from a specified date, and required the employer to provide transitional arrangements for the employees. The commission also mandated that the employer engage in good faith negotiations with the employees' representative to ensure a fair and orderly transition. This decision highlighted the importance of balancing the interests of both employers and employees in the context of significant business changes.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established