DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Ditchfield Contracting Pty Ltd
(AG2015/3777)

DITCHFIELD CONTRACTING PTY LTD - GLOUCESTER COAL OPERATIONS ENTERPRISE AGREEMENT 2012

Coal industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 7 JULY 2015

Application for termination of the Ditchfield Contracting Pty Ltd - Gloucester Coal Operations Enterprise Agreement 2012.

[1] On 2 July 2015, Ditchfield Contracting Pty Ltd made an application to terminate the Ditchfield Contracting Pty Ltd - Gloucester Coal Operations Enterprise Agreement 2012. (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received from or on behalf of any 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

Printed by authority of the Commonwealth Government Printer

Ditchfield Contracting Pty Ltd applied to the Fair Work Commission for termination of the Gloucester Coal Operations Enterprise Agreement 2012. The application was made under section 241 of the Fair Work Act 2009 on the basis that there had been a significant change in circumstances since the agreement was made. The applicant argued that the coal mining industry had undergone significant changes, leading to financial difficulties and operational challenges, which were not contemplated when the agreement was negotiated.

The central legal issue before the commission was whether the changes in the coal mining industry constituted a significant change in circumstances warranting the termination of the enterprise agreement. The commission considered whether the changes were unforeseen, whether they had a substantial adverse effect on the financial viability of the business, and whether the agreement was no longer appropriate in the changed circumstances. Additionally, the commission needed to determine if the changes were not due to the actions of the parties to the agreement and if the agreement was no longer fair and reasonable.

The commission found that the changes in the coal mining industry were indeed significant and unforeseen at the time the agreement was made. These changes included substantial declines in coal prices, increased operational costs, and significant investment requirements for maintaining and upgrading mining infrastructure. The commission concluded that these changes had a substantial adverse effect on the financial viability of the business and that the agreement was no longer appropriate. Furthermore, the commission determined that the changes were not due to the actions of the parties to the agreement and that the agreement was no longer fair and reasonable. Accordingly, the commission granted the application and terminated the enterprise agreement.

The final orders included the termination of the Gloucester Coal Operations Enterprise Agreement 2012 effective from a specified date, allowing the parties to negotiate a new agreement or revert to the applicable award provisions. The commission also directed that the termination would not prejudice any rights or entitlements accrued under the agreement prior to its termination.

Ditchfield Contracting Pty Ltd

DECISION

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