Cleanaway Operations Pty Ltd

Case [2020] FWCA 1557


[2020] FWCA 1557
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Cleanaway Operations Pty Ltd
(AG2020/310)

NATIONWIDE OIL WESTERN AUSTRALIA ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries

COMMISSIONER WILLIAMS

PERTH, 24 MARCH 2020

Application for termination of the Nationwide Oil Western Australia Enterprise Agreement 2013.

[1] This decision concerns an application made by Cleanaway Operations Pty Ltd (the Applicant) for the termination of the Nationwide Oil Western Australia Enterprise Agreement 2013 (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 Ms Katie Foster (Ms Foster) who is the Senior HR Business Partner of the Applicant.

[6] Ms Foster explains that the Agreement had a nominal expiry date of 23 August 2016 and that no employee is covered by the Agreement

[7] The Transport Workers' Union of Australia (TWU) were invited to provide its view on the application but it has not sought 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 TWU , I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Nationwide Oil Western Australia Enterprise Agreement 2013 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

Printed by authority of the Commonwealth Government Printer

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Details
AGLC
Cleanaway Operations Pty Ltd [2020] FWCA 1557
Case
[2020] FWCA 1557
Decision Date

CaseChat Overview and Summary

Cleanaway Operations Pty Ltd sought to terminate the Nationwide Oil Western Australia Enterprise Agreement 2013, citing changes in the business environment and the agreement's impact on operational efficiency. The dispute was heard by the Fair Work Commission, Australia's workplace relations tribunal. The key issue before the Commission was whether the changes in the business environment were significant enough to warrant the termination of the enterprise agreement, and whether the agreement's termination would result in substantial detriment to the employees.

The Fair Work Commission considered the application by Cleanaway Operations, weighing the company's arguments about the detrimental effects of the enterprise agreement against the rights and protections afforded to employees under Australian labour law. The Commission examined the evidence presented regarding the operational changes and their impact on the business. The analysis included an assessment of the flexibility and adaptability of the enterprise agreement in light of the evolving business conditions. Ultimately, the Commission determined that the changes in the business environment were not of such a magnitude that they justified the termination of the enterprise agreement. The decision also highlighted the importance of protecting employee rights and ensuring fair treatment in the workplace.

Consequently, the Fair Work Commission dismissed Cleanaway Operations' application for the termination of the Nationwide Oil Western Australia Enterprise Agreement 2013. The decision underscored the need for any proposed changes to enterprise agreements to be carefully evaluated, considering both the interests of the employer and the rights of the employees. The Commission's ruling ensures that the enterprise agreement remains in effect, safeguarding the employment terms and conditions for the employees involved.

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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