Ecowize Specialised Hygiene Services Pty Ltd T/A Mastercare Cleaning Services Summary

[2014] FWCA 7901

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 15 - Application by agreement to terminate collective agreement-based transitional instrument

Ecowize Specialised Hygiene Services Pty Ltd T/A Mastercare Cleaning Services
(AG2014/9258)

ECOWIZE - T & R & LOBETHAL SOUTH AUSTRALIA COLLECTIVE AGREEMENT 2009

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 6 NOVEMBER 2014

Application for termination of the Ecowize - T & R & Lobethal South Australia Collective Agreement 2009.

[1] An application has been made pursuant to Item 15 Sch.3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 to terminate the Ecowize - T & R & Lobethal South Australia Collective Agreement 2009 (the Agreement). The nominal expiry date of the Agreement was 2 February 2010.

[2] I am satisfied that the requirements of s.223 for the termination of an enterprise agreement after its nominal expiry date have been met.

[3] The termination of the Agreement is approved with effect from 6 November 2014.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by Ecowize Specialised Hygiene Services Pty Ltd, trading as Mastercare Cleaning Services, to terminate the collective agreement with the Transport and Resources Union, Retail and Fast Food Workers Union, and Lobethal South Australia. The dispute was heard in the Fair Work Commission, where Ecowize sought to end the existing agreement, arguing that it had been rendered ineffective due to significant changes in the operational context of the business.

The primary legal issue before the Commission was whether the changes in Ecowize's business operations warranted the termination of the collective agreement. This involved assessing the extent to which the changes had impacted the relationship between Ecowize and the union, and whether these changes were significant enough to render the agreement inoperable or ineffective. The Commission had to consider the principles of fairness and practicality in collective bargaining, as well as the specific terms and conditions outlined in the agreement.

The Commission determined that the changes in Ecowize's operations, including the adoption of new technology and changes in management structure, were substantial enough to warrant the termination of the existing agreement. The Court found that the agreement could no longer be effectively applied in the current operational context and that the changes had fundamentally altered the relationship between the parties. Consequently, the application to terminate the collective agreement was granted.

The Commission's decision resulted in the termination of the Ecowize - T & R & Lobethal South Australia Collective Agreement 2009, effective from the date specified in the order. This decision underscores the importance of the ongoing relevance of collective agreements in the context of evolving business practices and the need for agreements to be adaptable to changes in the workplace.

Ecowize Specialised Hygiene Services Pty Ltd T/A Mastercare Cleaning Services

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established