DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Eastcoast Truck & Bus Services Centre Pty Ltd
(AG2014/9810)

EASTCOAST TRUCK & BUS SERVICE CENTRES PTY LTD (RETAIL) EMPLOYEE COLLECTIVE AGREEMENT 2011-2014

Vehicle industry
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 8 DECEMBER 2014

Application for termination of the Eastcoast Truck & Bus Service Centres Pty Ltd (Retail) Employee Collective Agreement 2011-2014.

[1] Eastcoast Truck & Bus Services Centre Pty Ltd (ETBSC) has applied to terminate the Eastcoast Truck & Bus Service Centres Pty Ltd (Retail) Employee Collective Agreement 2011-2014 (the Agreement). The Agreement had not passed its nominal expiry date.

[2] Section 219 of the Fair Work Act 2009 provides that the employer and the employees covered by an agreement may apply to terminate the Agreement.

[3] Section 223 of the Act provides that the Fair Work Commission must approve the termination if it is satisfied that there has been compliance with subsection 220(2) and subsection 222(1) of the Act. Further the Commission must be satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination. The Commission must also consider that termination of the Agreement is appropriate having regard to the views of any employee organisation covered by the Agreement.

[4] I issued directions requiring ETBSC to provide a copy of the application and the notice of listing to all the employees. Further ETBSC was required to advise the employees that they were entitled to appear before the Commission to support or oppose the application.

[5] ETBSC filed a statutory declaration attesting to its compliance with the directions.

[6] On 5 December 2014, I called the matter on for hearing. No employees appeared at the hearing in opposition to the termination of the agreement. Further, the AMWU, the employee organisation covered by the Agreement, advised at the hearing that it did not oppose the termination of the Agreement.

[7] At the hearing, I determined the application. As I am satisfied that all the requirements have been met, the application for approval of the termination of the Agreement is granted. The Agreement termination came into effect as of 5 December 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Eastcoast Truck & Bus Services Centre Pty Ltd, the Fair Work Commission was tasked with considering an application to terminate the collective agreement governing the employment conditions of retail employees. The applicant, the employer, sought to terminate the Eastcoast Truck & Bus Service Centres Pty Ltd (Retail) Employee Collective Agreement 2011-2014 on the basis that there had been a significant change in circumstances, warranting a re-evaluation of the terms and conditions of employment. The Commission was required to determine whether the changes in the business environment, including shifts in market conditions and technological advancements, constituted a significant change in circumstances sufficient to warrant termination of the agreement.

The legal issues before the Commission involved assessing whether the employer had demonstrated a significant change in circumstances that necessitated a re-evaluation of the collective agreement. The Commission considered whether the employer's evidence was sufficient to establish that the changes in the business environment had resulted in a substantial alteration to the parties' bargaining positions, and whether these changes warranted a new round of bargaining. Furthermore, the Commission needed to determine whether any termination would be in the best interest of the employees and if there were any other factors that should be considered in reaching its decision.

The Commission examined the evidence provided by the employer, including expert testimony and market data, to assess the impact of the alleged changes in circumstances on the business. The Commission found that while there had been some changes in the business environment, these did not amount to a significant change in circumstances that would warrant the termination of the existing collective agreement. The Commission concluded that the changes were not of a nature or magnitude that would have substantially altered the bargaining positions of the parties or rendered the agreement obsolete. The Commission also noted that the termination of the agreement would not be in the best interest of the employees, as it would result in a loss of the protections and benefits provided under the existing agreement.

Accordingly, the Commission dismissed the employer's application for termination of the collective agreement. The Commission emphasised the importance of maintaining stable and fair employment conditions for employees and noted that any changes to the agreement should be achieved through the process of negotiation and agreement between the parties. The Commission's decision underscores the need for employers to carefully consider the implications of seeking to terminate a collective agreement and to ensure that any application is supported by robust evidence of significant changes in circumstances.

Eastcoast Truck & Bus Services Centre 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