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
(AG2016/125)

DOWNER EDI ENGINEERING BP (BULWER ISLAND) - TIER 3 WORKPLACE AGREEMENT 2009-2010

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 5 FEBRUARY 2016

Application for termination of the Downer EDI Engineering BP (Bulwer Island) - Tier 3 Workplace Agreement 2009 - 2010.

[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 BP (Bulwer Island) - Tier 3 Workplace Agreement 2009 - 2010 (“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

In the Fair Work Commission, Downer EDI Engineering Power Pty Ltd sought the termination of the Downer EDI Engineering BP (Bulwer Island) - Tier 3 Workplace Agreement 2009 - 2010. The dispute arose out of a significant restructuring within the company which resulted in the cessation of certain operations and the termination of employment for some workers. The Fair Work Commission was tasked with determining whether the changes warranted the termination of the existing workplace agreement, and if so, the appropriate transitional arrangements for the affected employees.

The central legal issue before the Commission was whether the substantial changes in Downer EDI Engineering Power's operations constituted a significant change in business circumstances as defined under the Fair Work Act 2009. The applicant argued that the changes were not merely operational but fundamentally altered the nature of the business, thus justifying the termination of the existing agreement. The Commission also needed to consider the impact of such a termination on the affected employees and whether appropriate transitional measures could be put in place to mitigate any adverse effects.

After examining the evidence and the submissions from both parties, the Commission found that the changes in the business circumstances were indeed significant enough to warrant the termination of the existing workplace agreement. The applicant had demonstrated that the alterations in its operations were substantial and not merely minor adjustments. The Commission also noted that the applicant had taken reasonable steps to minimise the impact of the termination on the employees, including offering redundancy packages and assisting with the transition to new employment. The Commission concluded that the termination of the agreement was justified and ordered the termination to proceed with specified transitional arrangements to protect the employees' interests.

The final orders of the Commission included the termination of the Downer EDI Engineering BP (Bulwer Island) - Tier 3 Workplace Agreement 2009 - 2010, effective from a specified date. The orders also outlined the transitional arrangements, including the provision of redundancy payments and support services for the affected employees, ensuring a fair and orderly transition during the restructuring process.

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