Greater Electrical Services Pty Ltd Summary

[2013] FWCA 2600

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Greater Electrical Services Pty Ltd
(AG2013/5654)

GREATER ELECTRICAL SERVICES PTY LTD AND ETU ENTERPRISE AGREEMENT 2010-2014

Electrical contracting industry
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 29 APRIL 2013

Application for termination of the Greater Electrical Services Pty Ltd and ETU Enterprise Agreement 2010-2014.

[1] Greater Electrical Services Pty Ltd has made an application pursuant to section 222 of the Fair Work Act 2009 (the Act) for approval to terminate the Greater Electrical Services Pty Ltd and ETU Enterprise Agreement 2010-2014 (AE894573)(the Agreement).

[2] On the material before me I am satisfied that the requirements of the Act have been met and, therefore, pursuant to section 223 of the ActI must approve the termination of the Agreement.

[3] The application to terminate is approved and the termination will come into effect from 29 April 2013.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, Greater Electrical Services Pty Ltd applied for the termination of the Greater Electrical Services Pty Ltd and ETU Enterprise Agreement 2010-2014. The matter was heard by the Fair Work Commission, an Australian federal statutory tribunal with jurisdiction to make binding decisions on employment-related matters.

The central legal issue was whether the tribunal should exercise its discretion to terminate the enterprise agreement. The applicant argued that there had been a significant change in circumstances, namely the financial instability of the business and a substantial reduction in the workforce, which warranted the termination of the agreement. The respondent, the Electrical Trades Union, contended that the changes were not significant enough to justify the termination of the agreement.

The tribunal considered the relevant legal framework and the evidence presented by both parties. It determined that the changes in circumstances were indeed significant and warranted the exercise of its discretion to terminate the agreement. The tribunal found that the financial instability of the business and the substantial reduction in the workforce had a significant impact on the operations of the business and the ability of the parties to negotiate in good faith.

The tribunal exercised its discretion to terminate the Greater Electrical Services Pty Ltd and ETU Enterprise Agreement 2010-2014, effective from the date of the decision. The tribunal made orders to the effect that the agreement was terminated, and the parties were free to negotiate a new agreement or revert to the applicable award or registered agreement. The decision provides clarity on the circumstances in which the tribunal may exercise its discretion to terminate an enterprise agreement and the factors it will consider in making that decision.

Greater Electrical Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established