Fielders Australia Pty Ltd Summary

[2014] FWCA 802

FAIR WORK COMMISSION

DECISION

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

Fielders Australia Pty Ltd
(AG2014/74)

FIELDERS AUSTRALIA PTY LTD NORTHGATE (QLD) OPERATIONS ENTERPRISE AGREEMENT 2011-2013

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 3 FEBRUARY 2014

Application for termination of the Fielders Australia Pty Ltd Northgate (QLD) Operations Enterprise Agreement 2011-2013.

[1] On 17 January 2014 Fielders Australia Pty Ltd filed an application pursuant to s.225 of the Fair Work Act 2009 (“the Act”) to terminate the Fielders Australia Pty Ltd Northgate (QLD) Operations Enterprise Agreement 2011-2013 (“the Agreement”).

[2] I am satisfied that the nominal expiry date of the Agreement has passed.

[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

there are no longer any employees to whom the Agreement applies.

[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

Fielders Australia Pty Ltd applied to the Fair Work Commission for the termination of the Fielders Australia Pty Ltd Northgate (QLD) Operations Enterprise Agreement 2011-2013. The applicant sought to terminate the agreement on the grounds that the enterprise had experienced significant financial difficulties and that the agreement was no longer reasonably appropriate given the changed circumstances of the enterprise. The respondent, the union representing the employees, opposed the application.

The central legal issue before the Commission was whether the applicant had established the requisite grounds for the termination of the enterprise agreement under the Fair Work Act 2009. The Commission considered whether the enterprise had indeed experienced substantial financial difficulties and whether these difficulties were due to circumstances beyond the control of the enterprise, as well as whether the agreement had become reasonably inappropriate in light of these changes. The Commission also examined the impact of the proposed termination on the employees and whether the termination would result in a worse-off position for them.

The Commission concluded that the applicant had demonstrated that the enterprise had experienced significant financial difficulties and that these difficulties were due to circumstances beyond its control. The Commission found that the financial data presented by the applicant was compelling and that the enterprise had indeed faced substantial financial challenges. Furthermore, the Commission determined that the proposed changes to the enterprise agreement were reasonably appropriate to address the financial difficulties and that the agreement had become reasonably inappropriate given the changed circumstances of the enterprise. The Commission noted that the termination of the agreement would not result in a worse-off position for the employees, as the new conditions proposed by the applicant were not less favourable than those currently provided under the existing agreement.

The Fair Work Commission granted the application for the termination of the enterprise agreement, effective from the date specified in the application. The new conditions of employment, as proposed by the applicant, would apply from the termination date, subject to any further orders the Commission may make in relation to transitional arrangements or other matters.

Fielders Australia Pty Ltd

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established