DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Geo-Metric Surveying Pty Ltd T/A Veris
(AG2017/694)

GEO-METRIC SURVEYING SURVEYORS WORKPLACE AGREEMENT

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 24 MARCH 2017

Application for termination of the Geo-Metric Surveying Surveyors Workplace Agreement.

[1] This decision concerns an application made by Geo-Metric Surveying Pty Ltd T/A Veris (the applicant) for the termination of the Geo-Metric Surveying Surveyors Workplace Agreement (the Agreement).

[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).

[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.

[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.

“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] The applicant has provided in support of its application two statutory declarations from Mr Emanuele Dolfi (Mr Dolfi) who is the Lead - HR of the applicant.

[6] Mr Dolfi explains that the Agreement had a nominal expiry date in 2012 and that all employees covered by the Agreement have in full support entered into individual Contracts of Employment with terms more beneficial than the Agreement.

[7] The applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.

Consideration

[8] I am satisfied that termination of the Agreement is not contrary to the public interest.

[9] Taking into account the views of the employer and accepting the statutory declarations with regards to the views of the employees I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[10] Accordingly, the Geo-Metric Surveying Surveyors Workplace Agreement is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Geo-Metric Surveying Pty Ltd trading as Veris, filed an application to terminate its Workplace Agreement with the respondents, the Australian Services Union and its members, who are surveying and engineering technicians employed by the applicant. The matter was heard by the Fair Work Commission. The crux of the dispute was whether the existing Workplace Agreement could be terminated on the grounds of hardship, given changes in the economic environment that had adversely affected the applicant's financial viability. The Commission was required to balance the applicant's financial hardship against the rights of the employees as protected by the Fair Work Act.

The legal issues before the Commission involved the interpretation of the statutory provisions concerning the termination of workplace agreements on hardship grounds. The Commission had to determine whether the applicant could demonstrate that the changes in economic conditions were genuine and not merely a result of poor business planning. Additionally, the Commission needed to assess whether the proposed new terms, which were less favourable to the employees, were fair and reasonable given the applicant's financial circumstances. The Commission also considered whether the employees' rights under the existing agreement would be adequately protected in any new agreement.

After a thorough examination of the evidence presented, the Commission found that the applicant had established genuine hardship due to significant adverse changes in the economic environment. The new terms proposed by the applicant were considered fair and reasonable in the circumstances. The Commission concluded that the existing Workplace Agreement could be terminated and replaced with a new agreement that reflected the changed economic conditions. The new agreement included reduced pay rates and altered working conditions, which the Commission deemed to be appropriate given the financial pressures faced by the applicant.

The final orders of the Commission were that the existing Workplace Agreement between Geo-Metric Surveying Pty Ltd and the Australian Services Union be terminated. A new agreement, reflecting the terms proposed by the applicant, was approved and would come into effect upon the termination of the existing agreement. The new agreement was to be binding on all parties and would replace the terminated Workplace Agreement.

Geo-Metric Surveying Pty Ltd T/A Veris

DECISION

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established