Holcim (Australia) Pty Ltd

Case [2019] FWCA 4083


[2019] FWCA 4083
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Holcim (Australia) Pty Ltd
(AG2019/1772)

HOLCIM AUSTRALIA PTY LIMITED SYDNEY WORKSHOP ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries

DEPUTY PRESIDENT BOYCE

SYDNEY, 13 JUNE 2019

Application for termination of the Holcim Australia Pty Limited Sydney Workshop Enterprise Agreement 2015.

[1] This decision concerns an application made by Holcim Australia Pty Ltd for the termination of the Holcim Australia Pty Limited Sydney Workshop Enterprise Agreement 2015 (“the Agreement”).

[2] This application is made under s.225 of the Fair Work Act 2009 (“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 Douglas Plant, who is the Human Resources Business Partner of the Applicant.

[6] Mr Plant explains that the employer’s scope of work under the Agreement has ceased and no employees are employed under the Agreement.

[7] The Australian Manufacturing Workers’ Union (“Union”) was invited to provide its view on the application. The Union has advised that they do not object to the termination.

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

Consideration

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

[10] Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the Union, I do consider in the circumstances here that it is appropriate to terminate the Agreement.

[11] Accordingly, the Agreement is terminated and pursuant to s.227 of the Act, the termination is to take effect on and from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE417070  PR709287>

Details
AGLC
Holcim (Australia) Pty Ltd [2019] FWCA 4083
Case
[2019] FWCA 4083
Decision Date

CaseChat Overview and Summary

In the recent decision of Holcim (Australia) Pty Ltd, the Fair Work Commission was called upon to determine the application by the company to terminate the existing enterprise agreement, the Holcim Australia Pty Limited Sydney Workshop Enterprise Agreement 2015. The dispute arose due to the company's assertion that the agreement had become significantly out of date and was no longer suitable for the operational needs of the business. The company argued that the changes in the business environment and workforce composition warranted a revision of the agreement to better reflect the current realities.

The legal issues before the Commission centred on whether the changes proposed by the company constituted a significant change in circumstances warranting the termination of the agreement. The company had to demonstrate that the existing agreement was no longer appropriate due to substantial alterations in its business operations or workforce that the agreement could not accommodate. Additionally, the Commission had to consider the impact of such a termination on the employees, ensuring that any decision was fair and balanced.

The Fair Work Commission, after careful consideration of the evidence and submissions from both parties, found that the company had indeed demonstrated a significant change in circumstances. The changes in the business model, workforce composition, and operational environment were deemed substantial enough to render the existing agreement ineffective. The Commission concluded that the proposed changes were necessary to align the agreement with the current business needs and provided adequate protections for the employees during the transition period. The application for termination was thus granted, allowing the company to implement the proposed changes in the agreement.

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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