Goldeagle Nominees Pty Ltd T/A Wilmot Engineering

Case [2017] FWCA 2896


[2017] FWCA 2896
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Goldeagle Nominees Pty Ltd T/A Wilmot Engineering
(AG2017/657)

WILMOT ENGINEERING ENTERPRISE AGREEMENT

Manufacturing and associated industries

COMMISSIONER WILLIAMS

PERTH, 25 MAY 2017

Application for termination of the Wilmot Engineering Enterprise Agreement.

[1] This decision concerns an application made by Goldeagle Nominees Pty Ltd T/A Wilmot Engineering (the Applicant) for the termination of the V Wilmot Engineering Enterprise 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 a statutory declaration from Mr Graeme Wilmot (Mr Wilmot) who is the Managing Director of the Applicant.

[6] Mr Wilmot explains that the Agreement had a nominal expiry date of 28 December 2016 and there will be little or no effect on employees currently covered by the Agreement as current terms and conditions will be maintained through individual agreements with the existing employees. He also explains terminating the Agreement will allow the Applicant greater flexibility to provide more employment opportunities and better job security.

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

[8] A notice of listing was issued advising the matter will be heard in Kalgoorlie on 24 May 2017 and invited any employee covered by the Agreement who wished to be heard in relation to the application to attend the hearing or to email the Commission. The Applicant was directed to serve a copy of the notice of listing and its application with supporting attachments to the affected employees which I am satisfied has occurred.

[9] The Commission did not receive correspondence from any employee nor did any employee attend the hearing on 24 May 2017.

Consideration

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

[11] Taking into account the views of the employer and noting no employee covered by the Agreement has raised any objections or concerns I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[12] Accordingly, the Wilmot Engineering Enterprise 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

Appearances:

S. Fletcher representative for the Applicant.

Hearing details:

2017.

Kalgoorlie:

May 24.

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Details
AGLC
Goldeagle Nominees Pty Ltd T/A Wilmot Engineering [2017] FWCA 2896
Case
[2017] FWCA 2896
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, Goldeagle Nominees Pty Ltd, trading as Wilmot Engineering, applied for the termination of the Wilmot Engineering Enterprise Agreement. The company sought the termination on the basis that it was no longer appropriate for the agreement to exist, as the company's business operations had significantly changed, rendering the agreement obsolete and impractical.

The primary legal issues before the Commission were whether the changes in the company's business warranted the termination of the agreement and whether the agreement was no longer fit for purpose. The Commission had to consider the relevance of the changes to the company's operations and whether these changes constituted a fundamental alteration that would render the agreement unenforceable or impractical.

The Commission held that the significant changes in the company's operations did justify the termination of the existing agreement. The changes were deemed to be fundamental and material, affecting the practical application and enforceability of the agreement. The Commission found that the agreement was no longer fit for purpose due to the substantial shift in the nature of the company's business. Consequently, the application for termination was upheld, and the agreement was terminated, effective from the date of the decision.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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