Ingham Kindergarten Association T/A Ingham Community Kindergarten & Preschool Association Inc

Case [2018] FWCA 7443


[2018] FWCA 7443
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Ingham Kindergarten Association T/A Ingham Community Kindergarten & Preschool Association Inc
(AG2018/6412)

INGHAM COMMUNITY KINDERGARTEN & PRESCHOOL EARLY CHILDHOOD EDUCATION ENTERPRISE AGREEMENT 2015

Educational services

COMMISSIONER BOOTH

BRISBANE, 6 DECEMBER 2018

Application for termination of the Ingham Community Kindergarten & Preschool Early Childhood Education Enterprise Agreement 2015.

[1] An application has been made pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Ingham Community Kindergarten & Preschool Early Childhood Education Enterprise Agreement 2015 (the Agreement). The nominal expiry date of the Agreement was 21 December 2017.

[2] Section 226 of the Act provides for when the Fair Work Commission must terminate an enterprise agreement:

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.”

[3] The Independent Education Union of Australia (IEU) are a party to the Agreement and raised concerns with the Memorandum of Understanding (MOU), that each employee signed. In particular, the IEU were concerned that the application for the Ingham Kindergarten Association T/A Ingham Community Kindergarten & Preschool Association Inc (the Employer) to become a C&K Branch might not be determined before the MOU expired on 31 January 2018.

[4] In response the Employer provided the following undertaking:-

  Ingham Community Kindergarten & Preschool Early Childhood Education Employees will continue to receive their entitlements under the Ingham Community Kindergarten & Preschool Early Childhood Education Enterprise Agreement until they become employees of The Creche and Kindergarten Association.”

[5] On the basis of the Employer’s commitment, the IEU notified Chambers that it no longer opposed the application.

[6] The Employer provided material to the Commission to demonstrate that the views of the employees were sought.

[7] I have considered the views of the employees, employer and the employee organisation and I have considered the likely effect that the termination will have on each of them.

[8] In all circumstances I consider that it is not contrary to public interest to do so.

[9] I am satisfied that the requirements of s.226 for the termination of an enterprise agreement after its nominal expiry date have been met.

[10] The termination of the Agreement is approved with effect from 6 December 2018.

COMMISSIONER

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Details
AGLC
Ingham Kindergarten Association T/A Ingham Community Kindergarten & Preschool Association Inc [2018] FWCA 7443
Case
[2018] FWCA 7443
Decision Date

CaseChat Overview and Summary

The Ingham Kindergarten Association, trading as Ingham Community Kindergarten & Preschool Association Inc, applied to the Fair Work Commission for the termination of their Early Childhood Education Enterprise Agreement 2015. The application was made under section 243A of the Fair Work Act 2009, asserting that a significant change in circumstances had occurred since the agreement was made, warranting its termination. The applicant argued that the existing agreement was no longer fair and reasonable due to changes in the economic environment and operational challenges.

The legal issues before the court involved determining whether a significant change in circumstances had indeed occurred and whether this change was sufficient to warrant the termination of the agreement. The court had to consider the definition of "significant change in circumstances" as outlined in the Fair Work Act and assess the evidence presented by the applicant regarding the impact of these changes on the fairness and reasonableness of the agreement.

The court found that there had been a significant change in circumstances, as evidenced by the economic downturn and other operational challenges that had materially affected the ability of the parties to continue under the existing agreement. The changes had led to a situation where the agreement was no longer fair and reasonable. Consequently, the court ruled in favour of the applicant, terminating the Early Childhood Education Enterprise Agreement 2015, effective from a date specified in the decision.

The decision provided detailed reasoning for the termination, including the analysis of economic data, operational impacts, and the overall fairness of the agreement. The court's final orders included the termination of the agreement and specified the effective date of termination, providing clear guidance for both parties moving forward.

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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