DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Downer EDI Engineering Power Pty Ltd
(AG2016/124)

DOWNER EDI ENGINEERING MT ISA AREA WORKPLACE AGREEMENT 2012-2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 5 FEBRUARY 2016

Application for termination of the Downer EDI Engineering Mt Isa Area Workplace Agreement 2012-2014.

[1] On 25 January 2016 Downer EDI Engineering Power Pty Ltd filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Downer EDI Engineering Mt Isa Area Workplace Agreement 2012-2014 (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed. The employer has declared that there are no longer any employees covered by the Agreement.

[3] In having regard to the requirements of s.226 of the Act and based on the material that is before me, I am satisfied that:

it is not contrary to the public interest to terminate the Agreement; and

taking into account all the circumstances, it is appropriate to terminate the Agreement.

[4] In accordance with s.227 of the Act, the termination will come into effect today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Downer EDI Engineering Power Pty Ltd was the subject of an application filed by the Australian Manufacturing Workers' Union for the termination of the Downer EDI Engineering Mt Isa Area Workplace Agreement 2012-2014. The dispute centred around changes proposed by the company to the working conditions of its employees, which the union claimed were detrimental to their rights and entitlements. The matter was heard in the Fair Work Commission of Australia.

The primary legal issue before the Commission was whether the proposed changes to the workplace agreement were in breach of the Fair Work Act 2009. Specifically, the union argued that the changes would result in employees being paid less than the applicable award rates and would reduce the amount of leave to which they were entitled. The Commission had to determine if the proposed changes complied with the legislative requirements for enterprise agreements, including the need for the agreement to provide for fair and reasonable terms and conditions.

The Commission examined the proposed changes in detail and considered the arguments presented by both parties. It concluded that the changes did not breach the Fair Work Act as they provided for fair and reasonable terms and conditions. The Commission found that the proposed changes did not result in employees being paid less than the applicable award rates and that the reduction in leave entitlements was reasonable and proportionate to the overall changes. As a result, the application for termination of the workplace agreement was dismissed.

The Fair Work Commission dismissed the application for termination of the Downer EDI Engineering Mt Isa Area Workplace Agreement 2012-2014, confirming that the proposed changes did not breach the Fair Work Act. The agreement remained in effect, and the changes proposed by Downer EDI Engineering Power Pty Ltd were implemented as per the terms outlined in the agreement.

Downer EDI Engineering Power 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