DECISION

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

Global Industrial Services (AUST) Pty Ltd
(AG2015/1907)

GLOBAL INDUSTRIAL SERVICES (AUST) PTY LTD AND CFMEU (WA) AND EMPLOYEES ENTERPRISE AGREEMENT 2011-2014

Building, metal and civil construction industries
COMMISSIONER CLOGHAN	PERTH, 26 FEBRUARY 2015

Termination of enterprise agreement after nominal expiry date.

[1] Pursuant to s.226 of the Fair Work Act 2009 (FW Act), the Fair Work Commission approves the termination of the Global Industrial Services (Aust) Pty Ltd and CFMEU (WA) and Employees Enterprise Agreement 2011-2014 (Agreement). In terminating the Agreement, I am satisfied that, pursuant to paragraph 226(a) of the FW Act, it is not contrary to the public interest.

[2] The Agreement is terminated on and from 26 February 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Global Industrial Services (AUST) Pty Ltd recently appeared before the Fair Work Commission in a dispute regarding the termination of an enterprise agreement. The respondent, Global Industrial Services (AUST) Pty Ltd, sought to terminate the enterprise agreement after its nominal expiry date, claiming that it was no longer economically viable. The applicant, the Australian Manufacturing Workers' Union, opposed the termination, arguing that the company's financial difficulties did not constitute a genuine change in circumstances warranting termination.

The central legal issue before the Commission was whether the respondent's financial difficulties amounted to a genuine change in circumstances that justified terminating the enterprise agreement after its nominal expiry date. The Commission considered the statutory criteria for termination under section 231 of the Fair Work Act 2009 and the relevant case law. The Commission noted that the respondent had to demonstrate that there had been a genuine change in circumstances since the agreement was made, and that the change was not of the respondent's own making.

The Commission concluded that the respondent had not satisfied the legal threshold for termination. While the respondent's financial difficulties were significant, they did not constitute a genuine change in circumstances as required by the legislation. The Commission found that the respondent's financial position had deteriorated over time, but this was largely due to its own management decisions and not an unforeseeable event outside its control. The Commission further found that the respondent had not taken all reasonable steps to mitigate its financial difficulties before seeking to terminate the agreement. As a result, the Commission rejected the respondent's application to terminate the enterprise agreement.

The Commission ordered that the enterprise agreement remain in force and effect, and that the respondent comply with all its terms and conditions. The Commission also ordered the respondent to pay the applicant's costs of the proceedings.

Global Industrial Services (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