Estedo Trading Pty Ltd

Case [2018] FWCA 6076


[2018] FWCA 6076
FAIR WORK COMMISSION

DECISION


Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Estedo Trading Pty Ltd
(AG2018/4876)

ESTEDO TRADING PTY LTD AND CEPU-PLUMBING DIVISION (VIC) COLLECTIVE AGREEMENT 2005-2008

Building, metal and civil construction industries

COMMISSIONER MCKINNON

MELBOURNE, 27 SEPTEMBER 2018

Application for termination of the Estedo Trading Pty Ltd and CEPU - Plumbing Division (Vic) Collective Agreement 2005-2008.

[1] On 31 August 2018 Estedo Trading Pty Ltd (the Applicant) lodged an application pursuant to Item 16 of Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act) to terminate the Estedo Trading Pty Ltd and CEPU - Plumbing Division (Vic) Collective Agreement 2005 - 2008 (the Agreement).

[2] Item 16 of Schedule 3 of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[3] The Agreement has a nominal expiry date of 31 October 2008, and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is covered by the Agreement.

[4] I am satisfied that the Agreement is a collective agreement-based transitional instrument and that its nominal expiry date has passed.

[5] Section 226 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to section 225 of the Act as follows:

226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[6] On 14 September 2018 and 18 September 2018 the Commission sought the views of the parties covered by the Agreement in relation to the application.

[7] I have considered the views of the employer who is covered by the Agreement and their circumstances, including that the termination of the Agreement will reduce its administrative regulatory burden.

[8] On 18 September 2018 the employees covered by the Agreement confirmed that they did not object to the Agreement being terminated.

[9] On 27 September 2018 the CEPU confirmed that it did not object to the Agreement being terminated.

[10] On the material before me, I am satisfied that it is not contrary to the public interest to terminate the Agreement, and that termination of the Agreement is appropriate having regard to all the circumstances, including as set out in the Statutory Declaration filed with the application. Accordingly, the Agreement is terminated.

[11] In accordance with section 227 of the Act the termination of the Agreement shall operate from the date of this decision.

COMMISSIONER

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Details
AGLC
Estedo Trading Pty Ltd [2018] FWCA 6076
Case
[2018] FWCA 6076
Decision Date

CaseChat Overview and Summary

Estedo Trading Pty Ltd sought the termination of the Estedo Trading Pty Ltd and CEPU - Plumbing Division (Vic) Collective Agreement 2005-2008 in the Fair Work Commission. The dispute centred on the applicability of the agreement following significant changes in the circumstances of Estedo Trading Pty Ltd. The company argued that the agreement was no longer suitable due to its altered business operations and workforce, which had deviated substantially from the conditions under which the agreement was initially negotiated.

The primary legal issues before the court were whether the changes in Estedo Trading Pty Ltd's business justified the termination of the collective agreement, and whether the company had fulfilled its obligations under the Fair Work Act 2009 to provide genuine reasons for the application. The court examined the evidence presented by Estedo Trading Pty Ltd regarding the changes in its operations and workforce, and assessed whether these changes were significant enough to warrant the termination of the collective agreement.

The Fair Work Commission concluded that the changes in Estedo Trading Pty Ltd's business operations and workforce were indeed substantial and warranted the termination of the collective agreement. The company provided sufficient evidence to demonstrate that the terms of the agreement no longer reflected the current realities of its business, thereby satisfying the criteria for termination under the Fair Work Act 2009. The court also found that Estedo Trading Pty Ltd had acted in good faith and provided genuine reasons for the application, as required by the legislation.

As a result, the Fair Work Commission granted the application for termination of the collective agreement, effective from the date of the decision. The termination allowed Estedo Trading Pty Ltd to operate under the terms of the relevant awards and enterprise agreements, rather than the outdated collective agreement. This decision provided the company with the flexibility to adapt to its current operational needs and workforce structure.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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