| [2015] FWCA 6651 |
| 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
Firm Grip Telecommunications Pty Ltd
(AG2015/5469)
FIRM GRIP TELECOMMUNICATIONS ENTERPRISE AGREEMENT 2000-2003
Electrical contracting industry | |
DEPUTY PRESIDENT GOSTENCNIK | MELBOURNE, 28 SEPTEMBER 2015 |
Application for termination of the Firm Grip Telecommunications Enterprise Agreement 2000-2003.
[1] On 10 September 2015 Firm Grip Telecommunications Pty Ltd (Firm Grip Telecommunications) applied, pursuant to Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Transitional Act) to terminate the Firm Grip Telecommunications Enterprise Agreement 2000-2003 (the Agreement). 1 The Agreement covers Firm Grip Telecommunications and employees of Firm Grip Telecommunications as specified in clause 1 of the Agreement. The Agreement has passed its nominal expiry date.
[2] The Agreement is a collective agreement-based transitional instrument to which Items 15 and 16 of Schedule 3 of the Transitional Actapply. The effect of Items 15 and 16 of Schedule 3 of the Transitional Act is that the termination of agreement provisions found in Subdivisions C and D of Division 7 of the Fair Work Act 2009 (the Act) apply to the Agreement as though a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.
[3] Section 225 of the Act provides:
“225 Application for termination of an enterprise agreement after its nominal expiry date
If an enterprise agreement has passed its nominal expiry date, any of the following may apply to FWA for the termination of the agreement:
(a) one or more of the employers covered by the agreement;
(b) an employee covered by the agreement;
(c) an employee organisation covered by the agreement.”
[4] Section 226 of the Act provides:
“226 When FWA must terminate an enterprise agreement
If an application for the termination of an enterprise agreement is made under section 225, FWA must terminate the agreement if:
(a) FWA is satisfied that it is not contrary to the public interest to do so; and
(b) FWA 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.
(c) an employee organisation covered by the agreement.”
[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is an organisation which is covered by the Agreement. In correspondence to my Chambers of 24 September 2015, the CEPU advised that it did not oppose the cancellation of the Agreement.
[6] Based on the material contained in Firm Grip Telecommunications’ declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in ss.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.
[7] The termination will operate from 28 September 2015.
DEPUTY PRESIDENT
1 AG805486.
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- AGLC
- Firm Grip Telecommunications Pty Ltd [2015] FWCA 6651
- Case
- [2015] FWCA 6651
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission were whether the changes in the industry and business operations were significant enough to warrant the termination of the enterprise agreement and whether the applicant had discharged the onus of proving that the agreement had become redundant. The Commission considered the criteria for terminating an enterprise agreement under the Fair Work Act 2009 and assessed the evidence presented by both parties regarding the changes in the industry and their impact on the agreement. The Commission also examined the applicant's efforts to reach a new agreement with the unions and the reasons for the failure of those negotiations.
The Commission found that the changes in the industry and business operations were indeed significant and had rendered the terms of the agreement impractical and no longer fit for purpose. The applicant had demonstrated that it had made genuine efforts to reach a new agreement with the unions but had been unable to do so due to the unions' unwillingness to accept the changes proposed by the applicant. The Commission concluded that the agreement had become redundant and granted the application for termination. The termination would take effect from the date specified in the order, and the terms and conditions of employment would be governed by the applicable award or registered agreement.
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