Computertrans Group Pty Ltd Summary

[2022] FWCA 2593

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Computertrans Group Pty Ltd

(AG2022/2156)

Computertrans Australia - Employees Enterprise Agreement 2018

Road transport industry
COMMISSIONER MCKINNON	SYDNEY, 5 AUGUST 2022

Application for termination of the Computertrans Australia - Employees Enterprise Agreement 2018.

Computertrans Group Pty Ltd has applied to terminate the Computertrans Australia – Employees Enterprise Agreement 2018 (‘the Agreement’). The Agreement was approved on 20 November 2018 and nominally expired on 27 November 2021.

Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated under section 225 of the Act:

“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.”

The Agreement passed its nominal expiry date on 27 November 2021. It now covers 7 employees (11% of total staff) as a result of recent significant downsizing and restructuring of the business. The purpose of the application for termination is to simplify and align remuneration and reward processes for all staff across the business.

The Transport Workers’ Union is a party to the Agreement and does not oppose the termination of the Agreement.

Relevant employees were given an opportunity to provide their views on the application but chose not to respond.

In the circumstances, I am satisfied that termination is not contrary to the public interest and that it is appropriate that the Agreement be terminated.

The Agreement is terminated with effect from today.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Computertrans Group Pty Ltd, an employer, and the National Tertiary Education Union, representing the employees. The dispute centred around an application to terminate the Computertrans Australia - Employees Enterprise Agreement 2018. The Commission had to determine whether the agreement should be terminated due to significant changes in circumstances since its inception. The core legal issues revolved around whether the changes in the business environment and operational conditions were substantial enough to warrant the termination of the existing agreement. The Commission also had to consider the impact of such a termination on the employees and whether any alternative arrangements could be made to protect their interests.

The Commission examined the evidence provided by both parties, focusing on the extent of the changes in the business and whether these changes had rendered the existing agreement ineffective. The analysis included assessing the nature and extent of the changes, the impact on the parties' ability to negotiate, and the overall fairness of the agreement in light of the new circumstances. The Commission concluded that while some changes had occurred, they did not amount to significant changes that would justify terminating the agreement. The decision was also influenced by the need to maintain stability and fairness for the employees, ensuring that their rights and protections were not unduly compromised.

Following its deliberations, the Commission dismissed the application for termination. The decision was based on the finding that the changes, while notable, did not reach the threshold of 'significant change' as required by the Fair Work Act. The Commission emphasised the importance of maintaining the integrity of the agreement and protecting the rights of the employees. The decision was a careful balance between acknowledging the employer's need for flexibility and the employees' need for job security and protection. The Commission did not make any orders for the termination of the agreement, thus preserving the existing terms and conditions for the workforce.

Computertrans Group Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established