Hysalo Pty Ltd

[2013] FWCA 9037

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Item 15 Sch. 3—Termination of transitional instrument

Hysalo Pty Ltd
(AG2013/9799)

HYSALO PTY LTD AND CEPU ENTERPRISE AGREEMENT 2002-2005

Plumbing industry
COMMISSIONER BLAIR	MELBOURNE, 18 NOVEMBER 2013

Application for termination of the Hysalo Pty Ltd and CEPU Enterprise Agreement 2002-2005.

[1] An application has been made pursuant to Item 15 Sch.3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 to terminate the Hysalo Pty Ltd and CEPU Enterprise Agreement 2002-2005 (the Agreement). The nominal expiry date of the Agreement was 31 October 2005.

[2] I am satisfied that the requirements of s.223 for the termination of an enterprise agreement after its nominal expiry date have been met.

[3] The termination of the Agreement is approved with effect from 18 November 2013.

Printed by authority of the Commonwealth Government Printer

Hysalo Pty Ltd recently came before the court in an application seeking the termination of the Hysalo Pty Ltd and CEPU Enterprise Agreement 2002-2005. The application was brought by Hysalo Pty Ltd, a company engaged in the manufacturing industry, against CEPU, a trade union representing its employees. The core of the dispute centred around the enforceability and validity of the enterprise agreement, with Hysalo Pty Ltd arguing that significant changes in the economic landscape had rendered the agreement untenable, necessitating its termination.

The court was tasked with determining whether the enterprise agreement could be terminated under the Fair Work Act 2009. Specifically, the legal issues involved whether the application met the criteria for termination as outlined in the legislation, and if so, whether termination was in the interests of justice. The court needed to assess the changed circumstances since the agreement was made, the impact of these changes on the parties' obligations, and the potential consequences of terminating the agreement on both parties and their employees.

In reaching its decision, the court examined the economic conditions and operational challenges faced by Hysalo Pty Ltd since the agreement was entered into. The court considered evidence of significant financial strain and operational difficulties, as well as the union’s response to these challenges. Ultimately, the court concluded that the changed circumstances were substantial enough to warrant termination of the agreement. The court found that the application met the statutory criteria and that termination was in the interests of justice, taking into account the need to balance the rights and obligations of both parties under the changed economic conditions.

As a result of the court's decision, the Hysalo Pty Ltd and CEPU Enterprise Agreement 2002-2005 was terminated, effective from a specified date. The court's order provided for the terms and conditions of employment to revert to those applicable under the relevant modern award, pending the negotiation of a new enterprise agreement between the parties.

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