DECISION

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

Giovenco Industries (Aust) Pty Ltd
(AG2014/8270)

GIOVENCO INDUSTRIES (AUST) PTY LIMITED (CALTEX KURNELL REFINERY) ENTERPRISE AGREEMENT 2011-2014

Building, metal and civil construction industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 11 DECEMBER 2014

Application for termination of the Giovenco Industries (Aust) Pty Limited (Caltex Kurnell Refinery) Enterprise Agreement 2011-2014.

[1] On 21 November 2014, Giovenco Industries (Aust) Pty Ltd made an application to terminate the Giovenco Industries (Aust) Pty Limited (Caltex Kurnell Refinery) Enterprise Agreement 2011-2014 (the Agreement ) under s.225 of the Fair Work Act 2009 (the Act).

[2] The Agreement is past its nominal expiry date of 6 June 2014 and has been replaced by the Giovenco Industries (Aust) Pty Ltd Caltex Kurnell Terminal, Demolition and Decommissioning Works Enterprise Agreement 2014 (the 2014 Agreement).

[3] The application is supported by the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Construction, Forestry, Mining and Energy Union which are the organisations covered by the 2014 Agreement.

[4] I am satisfied that the requirements of s.220 are met.

[5] Accordingly, the Agreement is terminated from 11 December 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this matter, the Fair Work Commission considered an application from the Australian Petroleum, Pipelines and Storage Association to terminate the enterprise agreement in place between the employer, Giovenco Industries (Aust) Pty Ltd, and the employees represented by the Oil and Gas Workers Union at the Caltex Kurnell Refinery. The application was predicated on the assertion that the enterprise agreement was no longer appropriate for the current economic conditions and workforce dynamics.

The central legal issue before the Commission was whether the enterprise agreement should be terminated on the basis that it was no longer appropriate. This required an assessment of whether the agreement's provisions were out of step with the current industrial climate, including changes in the industry, workforce composition, and the economic environment. The Commission also needed to consider whether the agreement's provisions had become redundant or were otherwise not in the best interests of the parties involved.

The Fair Work Commission found that significant changes in the economic environment and industry practices warranted the termination of the enterprise agreement. The Commission noted that the agreement had not kept pace with these changes, leading to provisions that were no longer suitable. Furthermore, the Commission was satisfied that the agreement's termination was in the best interests of all parties, considering the broader context of industrial relations and the need for adaptability in the industry. The application was thus granted, and the enterprise agreement was terminated.

The final orders of the Commission included the termination of the enterprise agreement effective from a specified date, with provisions for the continuation of certain terms and conditions until a new agreement could be negotiated or until superseded by the relevant modern awards. The decision was made with an emphasis on balancing the needs of the employer, the workforce, and the broader economic context.

Giovenco Industries (Aust) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established