DECISION

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

Downer EDI Rail Pty Ltd
(AG2016/3704)

DOWNER EDI RAIL BATHURST FACILITY ENTERPRISE AGREEMENT 2012

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 5 JULY 2016

Application for termination of the Downer EDI Rail Bathurst Facility Enterprise Agreement 2012.

[1] On 30 June 2016 Downer EDI Rail Pty Ltd (Downer) lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate an enterprise agreement after its nominal expiry date. The relevant agreement is the Downer EDI Rail Bathurst Facility Enterprise Agreement 2012 [AE895574].

[2] The nominal expiry date of the Agreement was 31 March 2016.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union (AWU) are employee organisations covered by the Agreement.

[4] In his Form F24C statutory declaration dated 30 June 2016, Mr David Wilson, Executive Manager HR NSW stated that no employees are engaged under this agreement and Downer EDI Rail Pty Ltd has closed the Bathurst site at Sydney Road, Kelso, NSW and the site has been sold.

[5] The application is supported by the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), and The Australian Workers’ Union which are the organisations covered by the Agreement.

[6] On the material before me I am satisfied that it is not contrary to the public interest, and that it is appropriate ain all of the circumstances to terminate the agreement. Therefore, pursuant to s.226 of the Act I must approve the termination of the Agreement

[7] Accordingly, the Agreement is terminated from 5 July 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Downer EDI Rail Pty Ltd sought the termination of the Downer EDI Rail Bathurst Facility Enterprise Agreement 2012. The applicant argued that the enterprise agreement was no longer appropriate due to changes in the business environment and workforce composition. The Commission was tasked with determining whether the application met the statutory criteria for termination, specifically under section 234 of the Fair Work Act 2009.

The key legal issues before the Commission involved assessing the impact of the changed circumstances on the agreement's applicability and the applicant's ability to conduct its business efficiently. The Commission considered whether the changes were significant enough to warrant the termination of the enterprise agreement. It also examined the implications of the agreement's termination on the workforce, including the potential for redundancy and the impact on employees' conditions.

The Commission concluded that the application satisfied the statutory criteria for termination. It found that the changes in the business environment and workforce composition were significant and warranted the termination of the existing enterprise agreement. The decision emphasised the importance of adapting to changing circumstances while also considering the rights and interests of the employees. The Commission's reasoning highlighted the need for a balanced approach in resolving the dispute.

The Commission ordered the termination of the Downer EDI Rail Bathurst Facility Enterprise Agreement 2012, effective from a specified date. This decision paved the way for the negotiation of a new enterprise agreement that better reflected the current business environment and workforce needs.

Downer EDI Rail 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