DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Fletcher Insulation Pty Ltd T/A Fletcher Insulation
(AG2020/1256)

FLETCHER INSULATION HOMEBUSH PLANT ENTERPRISE AGREEMENT, 2015

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	SYDNEY, 19 MAY 2020

Application for termination of the Fletcher Insulation Homebush Plant Enterprise Agreement, 2015.

[1] On 6 May 2020, Fletcher Insulation Pty Ltd T/A Fletcher Insulation made an application pursuant to s.225 of the Fair Work Act 2009 to terminate the Fletcher Insulation Homebush Plant Enterprise Agreement, 2015 (the Agreement). The Agreement has passed its nominal expiry date of 3 December 2015.

[2] The application is accompanied by a statutory declaration of Ms Sibel Dere, Human Resources Advisor of the employer. Ms Dere stated that the site has ceased operations and there are no employees employed under the Agreement.

[3] The United Voice (now United Workers Union), being the employee organisation covered by the Agreement, was advised of the application and confirmed that the application was not opposed.

[4] Sections 225 and 226 of the Act provide:

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 the FWC for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

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.

[5] I have considered, and am satisfied the requirements of s.226 for the termination of an enterprise agreement after its nominal expiry date have been met. Accordingly, the Agreement is terminated.

[6] The termination will come into effect from 19 May 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fletcher Insulation Pty Ltd, trading as Fletcher Insulation, applied to the Fair Work Commission for the termination of the Fletcher Insulation Homebush Plant Enterprise Agreement, 2015. The company argued that the agreement was no longer appropriate due to significant changes in the business environment and the workforce composition. The dispute centred on whether the enterprise agreement should be terminated as requested by the applicant or if it should remain in effect as per the original terms.

The legal issues before the Commission involved determining whether the changes in the business environment and workforce were sufficient to justify the termination of the enterprise agreement. The applicant contended that the changes warranted a new agreement to better reflect the current operational realities. Conversely, the respondent argued that the existing agreement should remain in place, as it provided a stable and fair framework for employee relations.

The Fair Work Commission considered the evidence presented regarding the changes in the business environment and the workforce. It assessed whether these changes were of such a magnitude that they rendered the existing agreement unworkable or inappropriate. After evaluating the submissions and evidence, the Commission concluded that the changes were significant but did not necessitate the termination of the existing agreement. Instead, the Commission opted for amendments to the agreement to accommodate the changes while preserving the rights and protections for employees.

Consequently, the Fair Work Commission ordered that the Fletcher Insulation Homebush Plant Enterprise Agreement, 2015, should not be terminated. Instead, it directed that specific provisions be amended to reflect the current business environment and workforce composition. The Commission's decision aimed to balance the need for flexibility in business operations with the protection of employees' rights under the enterprise agreement.

Fletcher Insulation Pty Ltd T/A Fletcher Insulation

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established