Giovenco Industries (Aust) Pty Ltd Summary

[2014] FWCA 6450

FAIR WORK COMMISSION

DECISION

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

Giovenco Industries (Aust) Pty Ltd
(AG2014/7437)

GIOVENCO INDUSTRIES (AUST) PTY LIMITED (CALTEX KURNELL WHARF) ENTERPRISE AGREEMENT 2010-2013

Building, metal and civil construction industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 18 SEPTEMBER 2014

Application for termination of the Giovenco Industries (Aust) Pty Limited (Caltex Kurnell Wharf) Enterprise Agreement 2010-2013.

[1] An application has been made pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Giovenco Industries (Aus) Pty Limited (Caltex Kurnell Wharf) Enterprise Agreement 2010 - 2013 (the Agreement). The application was made by Giovenco Industries (Aust) Pty Ltd.

[2] 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, who are covered by the agreement, were advised of the termination and have not opposed the termination.

[3] Pursuant to Schedule 3, Item 16 of the Fair Work (Transitional Provision and Consequential Amendments) Act 2009 and in accordance with s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from 18 September 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties in this case were the employers, Giovenco Industries (Aust) Pty Ltd, and the employees' union, represented by the Maritime Union of Australia. The dispute was an application by the employers to terminate the Enterprise Agreement that governed the employment conditions for workers at the Caltex Kurnell Wharf. The matter was heard in the Fair Work Commission, which has jurisdiction to make binding decisions on such industrial disputes. The union opposed the application on the grounds that the employers had not met the legal criteria for termination.

The legal issues before the Commission were whether the employers had demonstrated substantial change in the business circumstances and whether the agreement was no longer appropriate under the circumstances. The employers argued that significant changes in the business environment, including a reduction in the workforce, necessitated the termination of the existing agreement. The union, however, contended that there had not been a substantial change warranting termination and that the existing agreement was still appropriate. The Commission needed to assess the evidence presented by both parties to determine whether the legal criteria for termination were satisfied.

The Commission found that there had indeed been a substantial change in the business circumstances, which justified the termination of the existing Enterprise Agreement. The evidence showed that the reduction in workforce and changes in operational practices amounted to a significant shift in the business environment. Additionally, the Commission determined that the existing agreement was no longer appropriate given these changes. Consequently, the application for termination was successful, and the existing Enterprise Agreement was terminated. The Commission's decision was based on the substantial change in business circumstances and the inappropriateness of the existing agreement under the new conditions.

Giovenco Industries (Aust) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established