Cleanaway Operations Pty Ltd

Case [2016] FWCA 1616


[2016] FWCA 1616
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Cleanaway Operations Pty Ltd
(AG2016/2412)

TRANSPACIFIC INDUSTRIAL SOLUTIONS PERTH METRO ENTERPRISE AGREEMENT 2010

Manufacturing and associated industries

COMMISSIONER WILLIAMS

PERTH, 15 MARCH 2016

Application for termination of the Transpacific Industrial Solutions Perth Metro Enterprise Agreement 2010.

[1] This decision concerns an application made by Cleanaway Operations Pty Ltd (the applicant) for the termination of the Transpacific Industrial Solutions Perth Metro Enterprise Agreement 2010 (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

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

[4] Section 226 of the Act, 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.

[5] The applicant has provided in support of its application a statutory declaration from Mr Nathan Richards (Mr Richards) who is the Human Resources Business Partner of the applicant.

[6] Mr Richards explains that the Agreement had a nominal expiry date of 30 September 2013 and that the applicant no longer employs any person covered under the Agreement. He also says employees are now covered by an enterprise agreement which offers better conditions.

[7] The Australian Workers’ Union (AWU) was invited to provide its view on the application and advised it does not seek to make a submission.

[8] The applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

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

[10] Taking into account the views of the employer and accepting the applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the AWU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Transpacific Industrial Solutions Perth Metro Enterprise Agreement 2010 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

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Details
AGLC
Cleanaway Operations Pty Ltd [2016] FWCA 1616
Case
[2016] FWCA 1616
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved Cleanaway Operations Pty Ltd, an applicant, seeking the termination of the Transpacific Industrial Solutions Perth Metro Enterprise Agreement 2010. The dispute arose as Cleanaway sought to terminate the enterprise agreement in order to implement changes to the working conditions of its employees. The Commission was tasked with determining whether the application met the legal criteria for termination under the Fair Work Act 2009.

The central legal issue before the Commission was whether Cleanaway had established sufficient grounds to warrant the termination of the enterprise agreement. This required the Commission to consider whether the application met the statutory criteria for termination, including whether there had been a significant change in circumstances since the agreement was made, and whether the changes sought by Cleanaway were reasonable and necessary. The Commission also needed to assess the impact of the proposed changes on the employees and whether the application complied with procedural requirements.

In its decision, the Commission found that Cleanaway had not demonstrated a significant change in circumstances that warranted the termination of the enterprise agreement. The Commission noted that the changes proposed by Cleanaway were not as substantial as claimed and that the company had not adequately demonstrated how the proposed changes were necessary or reasonable. The Commission also highlighted procedural deficiencies in the application process, including a lack of proper consultation with the relevant unions. Consequently, the application for termination was dismissed.

The Fair Work Commission ordered that the Transpacific Industrial Solutions Perth Metro Enterprise Agreement 2010 remain in effect, and Cleanaway's application for termination was rejected. The Commission's decision emphasised the importance of meeting the legal criteria for termination and the necessity for procedural compliance, including proper consultation with employee representatives.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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