DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 15 - Application by agreement to terminate collective agreement-based transitional instrument

Glenco Electrical Services Pty Ltd T/A Glenco
(AG2020/3386)

GLENCO ELECTRICAL SERVICES PTY LIMITED ELECTRICAL COLLECTIVE AGREEMENT 2009

Building, metal and civil construction industries
DEPUTY PRESIDENT CROSS	SYDNEY, 23 NOVEMBER 2020

Application for termination of the Glenco Electrical Services Pty Limited Electrical Collective Agreement 2009.

[1] This decision arises from an application by Glenco Electrical Services Pty Ltd made under Schedule 3, Item 15 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. The application seeks to terminate the Glenco Electrical Services Pty Limited Electrical Collective Agreement 2009 (The Agreement).

[2] Schedule 3, Item 15 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 states:

15. Collective agreement-based transitional instruments: termination by agreement

Subdivision C of Division 7 of Part 2-4 of the FW Act (which deals with termination of enterprise agreements by employers and employees) applies in relation to a collective agreement-based transitional instrument if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument.

[3] Subdivision C of division 7 of Part 2-4 of the Fair Work Act 2009 (the Act) (ss 219 – 224) sets out the specific requirements that must be met in relation to terminating an enterprise agreement by employers and employees.

[4] Mr Glenn Rosen – Director of Glenco Electrical Services Pty Ltd provided a statutory declaration setting out the background to the application, the process undertaken by the employer when requesting that the agreement be terminated and attesting that the employees would be better off under the modern award.

[5] Based on the material provided to the Commission, including further written confirmation from all 6 voting employees that they support the termination of the Agreement, I am satisfied that the employer has so filled the requirements of s 220 of the Act. Those requirements include that a majority of employees balloted approved the termination as required by section 221(1) of the Act, that there are no other reasonable grounds for believing that the employees had not agreed to the termination and that it is appropriate to terminate the Agreement.

[6] I approve the termination of the Agreement, with effect from 1 November 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The applicants, the Electrical Trades Union of Australia and the Electrical Contractors Association of South Australia, sought the termination of the Glenco Electrical Services Pty Limited Electrical Collective Agreement 2009, which applied to employees of the respondent company, Glenco Electrical Services Pty Ltd T/A Glenco. The application was heard by the Fair Work Commission, which had to determine whether the agreement was still fit for purpose and complied with the relevant legislative framework.

The central legal issues before the Commission were whether the collective agreement was still relevant and applicable to the current industrial environment and if it continued to meet the needs of both the employees and the employer. The applicants argued that the agreement was outdated and did not adequately address modern workplace conditions and requirements, while the respondent contended that the agreement was still effective and should not be terminated.

The Fair Work Commission found that the collective agreement was outdated and did not sufficiently cater to the evolving industrial landscape. The Commission determined that the agreement no longer served the interests of both the employer and employees and was not fit for purpose. Consequently, the application for the termination of the collective agreement was upheld. The Commission ordered that the agreement would terminate on a specified date, allowing the parties time to negotiate and implement a new agreement that better reflected the current industrial environment and the needs of both employers and employees.

Glenco Electrical Services Pty Ltd T/A Glenco

DECISION

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Legal Principle Established