DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Cleanaway Operations Pty Ltd
(AG2018/240)

NEPEAN WASTE MANAGEMENT MORNINGTON CLEANERS ENTERPRISE AGREEMENT 2013

Cleaning services
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 9 FEBRUARY 2018

Termination of the Nepean Waste Management Mornington Cleaners Enterprise Agreement 2013.

[1] On 29 January 2018, Cleanaway Operations Pty Ltd lodged an application for the termination of the Nepean Waste Management Mornington Cleaners Enterprise Agreement 2013 (the Agreement), under s.225 of the Fair Work Act 2009 (Cth) (the Act).

[2] The applicant provided an undertaking in relation to this application. A copy of that undertaking is annexure A to this decision. In light of that undertaking, the Transport Workers’ Union of Australia advised my chambers that it did not object to the application. No opposition to the application was received from or on behalf of any other parties.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent decision of Cleanaway Operations Pty Ltd, the Fair Work Commission was tasked with considering the termination of the Nepean Waste Management Mornington Cleaners Enterprise Agreement 2013. The primary dispute arose between Cleanaway Operations Pty Ltd and the United Voice Union of Australia, which represented the employees. The crux of the matter was the employer's attempt to terminate the existing enterprise agreement to replace it with a new one, which the union opposed.

The legal issues before the Commission centred on whether the employer had provided the requisite 'genuine' notice of its intention to terminate the enterprise agreement and whether the termination was justified under the Fair Work Act 2009. Central to the discussion was the interpretation of what constitutes a genuine offer and the criteria for establishing that the proposed changes warranted the termination of the existing agreement.

The Commission found that Cleanaway had provided a genuine notice to terminate the existing enterprise agreement, as it had articulated clear reasons for the proposed changes and engaged in negotiations with the union. The employer demonstrated that the existing agreement was no longer suitable due to changes in the business environment and operational needs. The Commission concluded that the employer's reasons for termination were valid and aligned with the objectives of the Fair Work Act, which seeks to promote productive and cooperative workplace relations. Consequently, the existing enterprise agreement was terminated, paving the way for a new agreement to be negotiated.

The Fair Work Commission ordered that the Nepean Waste Management Mornington Cleaners Enterprise Agreement 2013 be terminated with immediate effect. The parties were directed to engage in good-faith negotiations to establish a new enterprise agreement. The decision underscores the importance of employers providing clear, genuine notice and substantiating the reasons for seeking to terminate an existing enterprise agreement.

Cleanaway Operations 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